The property insurer ABC incurred losses and loss-adjustment expenses of $750,000 in its car insurance line of

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The property insurer ABC incurred losses and loss-adjustment expenses of $750,000 in its car insurance line of business. The insurance company earns $1 million on premiums. The expected loss ratio is 0.6. Calculate if ABC’s premium is appropriate based on the loss ratio rate-making method.

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Principles Of Risk Management And Insurance

ISBN: 1292349743

14th Global Edition

Authors: George E. Rejda, Michael McNamara

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