19.6 A group medical insurance policy covers the medical expenses incurred by 100,000 mutually independent lives....

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19.6 A group medical insurance policy covers the medical expenses incurred by 100,000 mutually independent lives. The annual loss amount X incurred by each life is distributed as follows: 50 200 500 1000 10, 000 0.2 0.1 P(X = 1): The policy pays 80% of the annual losses for cach life. The premium is equal to the 95-th percentile of the normal distribution which approximates the distribution of total claims. Determine the security loading. A) 1,213,000 0.3 0.1 0.1 0.2 B) 1,356,000 C) 1,446,000 D) 1,516,000 E) 1,624,000 19.6 A group medical insurance policy covers the medical expenses incurred by 100,000 mutually independent lives. The annual loss amount X incurred by each life is distributed as follows: 50 200 500 1000 10, 000 0.2 0.1 P(X = 1): The policy pays 80% of the annual losses for cach life. The premium is equal to the 95-th percentile of the normal distribution which approximates the distribution of total claims. Determine the security loading. A) 1,213,000 0.3 0.1 0.1 0.2 B) 1,356,000 C) 1,446,000 D) 1,516,000 E) 1,624,000