CAS Exam 5 Fall 2014, Question 2
Study guide: Exam 5
Given the following policy data:
| Policy | Effective Date | Expiration Date | Initial Policy Premium |
|---|---|---|---|
| 1 | June 1, 2012 | May 31, 2013 | 480 |
| 2 | July 1, 2012 | December 31, 2012 | 125 |
| 3 | March 1, 2013 | February 28, 2014 | 225 |
| 4 | August 1, 2013 | March 31, 2014 | 300 |
- Six months after the policy expires, the initial policy premium on every policy increases by 8% due to the final audit.
Part a (0.5 points)
Calculate calendar year 2013 earned premium as of December 31, 2013.
Part b (0.5 points)
Calculate calendar year 2013 written premium as of December 31, 2013.
Part c (0.25 points)
Calculate policy year 2013 earned premium as of December 31, 2013.
Part d (0.25 points)
Calculate policy year 2013 written premium as of December 31, 2014.
Answer this question and see the worked solution