CAS Exam 5 Spring 2015, Question 24
Study guide: Exam 5
The following information is available for an insurance company:
Paid Claims Gross of Salvage and Subrogation ($000):
| Accident Year | 12 Months | 24 Months | 36 Months |
|---|---|---|---|
| 2012 | 120 | 132 | 138 |
| 2013 | 90 | 99 | |
| 2014 | 100 |
Received Salvage and Subrogation ($000):
| Accident Year | 12 Months | 24 Months | 36 Months |
|---|---|---|---|
| 2012 | 16 | 17 | 17 |
| 2013 | 14 | 15 | |
| 2014 | 15 |
- No development occurs beyond 36 months for paid claims.
- No development occurs beyond 24 months for received salvage and subrogation.
Calculate ultimate claims net of salvage and subrogation for all accident years using a ratio approach.
Part a (2 points)
Answer this question and see the worked solution