CAS Exam 5 Fall 2018, Question 2
Study guide: Exam 5
Given the following premium and loss information:
Premium Transactions
| Policy | Original Effective Date | Original Expiration Date | Transaction Effective Date | Full-Term Premium ($) | Notes |
|---|---|---|---|---|---|
| A | July 1, 2016 | June 30, 2017 | July 1, 2016 | 800 | Start of New Policy |
| A | July 1, 2016 | June 30, 2017 | April 1, 2017 | 400 | Additional Premium for Endorsement |
| B | April 1, 2017 | March 31, 2018 | April 1, 2017 | 1,000 | Start of New Policy |
| C | October 1, 2017 | September 30, 2018 | October 1, 2017 | 500 | Start of New Policy |
| C | October 1, 2017 | September 30, 2018 | April 1, 2018 | N/A | Policy Canceled |
Loss Transactions
| Policy | Accident Date | Payment Date | Loss Payment ($) |
|---|---|---|---|
| A | October 1, 2016 | October 15, 2016 | 500 |
| A | January 1, 2017 | January 15, 2017 | 200 |
| B | October 1, 2017 | January 15, 2018 | 500 |
| C | January 1, 2018 | January 15, 2018 | 750 |
- Each claim is closed on the payment date.
Part a (0.75 points)
Calculate the 2017 calendar year earned premium.
Part b (1.25 points)
Calculate the 2017 policy year loss ratio evaluated at December 31, 2018.
Answer this question and see the worked solution