CAS Exam 5 Fall 2016, Question 15
Study guide: Exam 5
(1.75 points)
Given the following for a workers compensation policyholder:
| Individual Claims Reported During the Experience Period |
|---|
| $19,000 |
| $3,000 |
| $102,500 |
| $11,000 |
- Standard premium = $435,000.
- 3-year payroll = $14,590,000.
- Expected loss rate = 2.40 per $100 of payroll.
- D-ratio = 0.19.
- Primary loss cap = $5,000.
- Primary credibility = 0.75.
- Excess credibility = 0.15.
Calculate the policy's premium under an experience rating plan.
Part a (1.75 points)
Answer this question and see the worked solution