Question: 9 . 1 3 ( * ) For a certain group, aggregate claims are uniformly distributed over ( 0 , 1 0 ) . Insurer
For a certain group, aggregate claims are uniformly distributed over Insurer
A proposes stoploss coverage with a deductible of for a premium equal to the expected
stoploss claims. Insurer B proposes group coverage with a premium of and a dividend
a premium refund equal to the excess, if any, of over claims. Calculate such that the
expected cost to the group is equal under both proposals.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
