CAS Exam 5 Spring 2016, Question 2
Study guide: Exam 5
An insurance company writes both 6-month and 12-month automobile policies. Given the following information:
| Policy | Original Effective Date | Original Expiration Date | Transaction Effective Date | Territory | Full-Term Written Premium | Notes |
|---|---|---|---|---|---|---|
| A | January 1, 2015 | December 31, 2015 | January 1, 2015 | 1 | $1,000 | Start of New Policy |
| A | January 1, 2015 | December 31, 2015 | July 1, 2015 | 1 | N/A | Policy Canceled |
| B | July 1, 2015 | June 30, 2016 | July 1, 2015 | 1 | $500 | Start of New Policy |
| B | July 1, 2015 | June 30, 2016 | September 30, 2015 | 2 | $400 | Relocated to Territory 2 |
| C | October 1, 2015 | March 31, 2016 | October 1, 2015 | 2 | $1,000 | Start of New Policy |
- Full-term written premium represents the policy premium if policy characteristics shown were in place from original effective date to original expiration date.
Part a (0.75 points)
Calculate the 2015 calendar year written premium as of December 31, 2015.
Part b (0.75 points)
Calculate the 2015 calendar year earned premium as of December 31, 2015.
Part c (0.5 points)
Calculate the in-force premium as of October 1, 2015.
Part d (0.5 points)
Calculate the 2015 calendar year earned exposures separately for Territory 1 and Territory 2 as of December 31, 2015.
Answer this question and see the worked solution