Question: Based on the following data, answer the questions below. Show all work. Accident Earned Reported Year Exposures On-level Earned Loss & ALAE @ 12/31/20

Based on the following data, answer the questions below. Show all work. Accident Earned Reported Year Exposures On-level Earned Loss & ALAE @ 12/31/20 Reported LDF for Claims @ Losses LDF for Claim 12/31/20 Counts Premium 2018 400 $100,000 $90,000 60 1.00 1.00 2019 572 $110,000 $124,800 70 1.05 1.20 2020 680 $120,000 $88,300 70 1.80 1.40 Calendar Year 2020 Data Written Premium $100,000 Earned Premium $90,000 Incurred Loss & ALAE $55,000 ULAE $2,750 Commissions $16,000 Taxes, Licenses & Fees $4,000 Other Acquisition Expense $6,000 General Expense $4,500 Profit Provision 6% o Rates will be in effect for one year o Rate change effective date is 10/1/2021 Assume all policies are annual a) Calculate the total permissible & LAE ratio b) Calculate the frequency and severity trends (assume trends are exponential) c) Calculate the average trended experience loss & LAE ratio d) Calculate the indicated statewide rate level change.

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