CAS Exam 5 Fall 2017, Question 3
Study guide: Exam 5
Given the following for an insurance company that writes only annual policies:
| Policy | Effective Date | Annual Premium |
|---|---|---|
| A | July 1, 2014 | $200 |
| B | October 1, 2014 | $240 |
| C | January 1, 2015 | $260 |
| D | July 1, 2015 | $280 |
- Policy D was cancelled March 31, 2016.
Part a (0.5 points)
Calculate the following for calendar year 2015:
i. Earned premium
ii. Written premium
Part b (0.5 points)
Calculate the following as of December 31, 2016:
i. Policy year 2015 earned premium
ii. Policy year 2015 written premium
Part c (0.5 points)
Briefly describe one advantage and one disadvantage of calendar year data aggregation.
Answer this question and see the worked solution