Happy Time Day Camp has the following distribution for its annual liability costs: Loss =$2,000,000 with...

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Happy Time Day Camp has the following distribution for its annual liability costs: Loss =$2,000,000 with probability .0001 $100,000 with probability .001 $5,000 with probability .1 so with probability .8989| 9.1. What are the expected claim costs for Happy Time? 9.2. If an insurer offered Happy Time a policy with 50% coinsurance, what are the expected claim costs on this policy? If an insurer offered Happy Time a policy with a $5000 annual deductible, what are the expected claim costs on this policy? 9.3 9.4 If an insurer offered Happy Time a policy with a $500,000 limit, what are the expected claim costs on this policy? Happy Time Day Camp has the following distribution for its annual liability costs: Loss =$2,000,000 with probability .0001 $100,000 with probability .001 $5,000 with probability .1 so with probability .8989| 9.1. What are the expected claim costs for Happy Time? 9.2. If an insurer offered Happy Time a policy with 50% coinsurance, what are the expected claim costs on this policy? If an insurer offered Happy Time a policy with a $5000 annual deductible, what are the expected claim costs on this policy? 9.3 9.4 If an insurer offered Happy Time a policy with a $500,000 limit, what are the expected claim costs on this policy?

Answer rating: 100% (QA)

Loss Probability LossProb 00001 0001 01 2000000 200 100000 100 5000 500 08989 Expected claim ... View the full answer