CAS Exam 5 Spring 2013, Question 1
Study guide: Exam 5
Given the following information for an insurance company that writes 24-month term policies:
| Policy Group | Effective Date | Expiration Date | Number of Vehicles |
|---|---|---|---|
| A | January 1, 2010 | December 31, 2011 | 50 |
| B | July 1, 2010 | June 30, 2012 | 100 |
All policies within each group have the same effective date.
Part a (0.5 points)
Calculate the earned car-years for calendar year 2011.
Part b (0.5 points)
Calculate the earned car-years for policy year 2010 evaluated as of December 31, 2010 and as of December 31, 2011.
Part c (0.5 points)
Assume Policy Group B cancels on January 1, 2011. Calculate the 2010 policy year written car-years evaluated as of December 31, 2010 and as of December 31, 2011 for Policy Group B.
Part d (0.5 points)
Assume Policy Group B cancels on July 1, 2011. Calculate the 2010 and 2011 calendar year written car-years for Policy Group B.
Answer this question and see the worked solution