CAS Exam 5 Fall 2013, Question 20
Study guide: Exam 5
Given the following information:
| Accident Year | Earned Premium | On-Level Adjustment | Reported Claims | Pure Premium Trend Factors | Tort Reform Factors | Reported CDF to Ultimate |
|---|---|---|---|---|---|---|
| 2010 | $50,000 | 0.900 | $25,000 | 1.061 | 0.750 | 1.250 |
| 2011 | $52,000 | 0.950 | $20,000 | 1.030 | 0.900 | 1.750 |
| 2012 | $54,000 | 1.000 | $10,000 | 1.000 | 1.000 | 2.500 |
Using the Cape Cod technique, estimate the IBNR for accident year 2011.
Part a (2 points)
Answer this question and see the worked solution