Takaful wishes to adjust their rates for next year, they calculate that the expected loss ratio...
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Takaful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.80, while the data shows that the loss adjustment expenses is 566 and the total premium earning is 990 The company's current premium is 77. Using the experience rating method what will the new primum be if the credibility factor is 0.60 Problem 4: Asia Life Insurance insures a total of 1000 cars, has a loss adjustment expense of 5000, underwriting expenses of 1875 and have earned premiums worth 12,537. Based on this information calculate their Gross Rate using the pure premium method. HC Takaful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.80, while the data shows that the loss adjustment expenses is 566 and the total premium earning is 990 The company's current premium is 77. Using the experience rating method what will the new primum be if the credibility factor is 0.60 Problem 4: Asia Life Insurance insures a total of 1000 cars, has a loss adjustment expense of 5000, underwriting expenses of 1875 and have earned premiums worth 12,537. Based on this information calculate their Gross Rate using the pure premium method. HC
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For the Takaful problem The experience rating formula is given by New Premium Credibility Factor x E... View the full answer
Related Book For
Auditing A Practical Approach
ISBN: 9780730382645
4th Edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
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