Question: Given the following data and using the pure premium rate making method calculate the insurance rate. Incurred Loss $18,500,000 Earned Exposure Units 65,212 Loss Ratio

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

Incurred Loss $18,500,000

Earned Exposure Units 65,212

Loss Ratio 63.8%

Fixed Expenses per Exposure unit $30

Profit & Contingencies Factor 3%

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