Question: Given the following data and using the pure premium rate making method calculate the insurance rate. Incurred Loss $500,000 Earned Exposure Units 10,000 Fixed Expenses

Given the following data and using the pure premium rate making method calculate the insurance rate.

Incurred Loss $500,000

Earned Exposure Units 10,000

Fixed Expenses per Exposure unit $13

Profit & Contingencies Factor 3%

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