The table below shows the auto liability loss experience for Insurer B $($IB$).$ The losses are over a three$-$year period, with Year $1$ being the earliest year and Year $3,$ the most recent year. Using the information in the table, and considering the fact that IB insured $100,000$ cars each year during this three$-$year period, which one of the following statements is true?

Auto Liability Loss Experience at Year $3$ End

Year Paid Losses Loss Reserves Incurred Losses

$1$ $$15,000,000$

$$0$ $$15,000,000$

$2$ $ $9,000,000$

$ $6,000,000$ $$15,000,000$

$3$ $ $4,500,000$

$$10,500,000$ $$15,000,000$

Total $$28,500,000$

$$16,500,000$ $$45,000,000$

Available answer options

Select only one option

A

If IB uses the pure premium indicated by this loss experience to develop rates for a future period, the adequacy of loss reserves will not matter because loss reserves will be excluded from the analysis.

B

Assuming the information in the table is accurate, IB needs a pure premium of $$55$ per car, per year, to pay its losses during this past three$-$year period.

C

Assuming the information in the table is accurate, IB needs a pure premium of $$95$ per car, per year, to pay its losses during this past three$-$year period.

D

If this loss experience is used by IB to develop rates for a future period, any inadequacy in the loss reserves would make future rates inadequate.