CAS Exam 5 Spring 2018, Question 7
Study guide: Exam 5
Given the following information:
| Underwriting profit provision | 5% |
| Expenses ($000) | % Fixed | |
|---|---|---|
| Countrywide General Expenses | 3,648 | 75% |
| Countrywide Other Acquisition Expenses | 4,368 | 75% |
| State Tax, Licenses & Fees | 315 | 25% |
| State Commission & Brokerage | 1,868 | 0% |
| Countrywide | State | |
|---|---|---|
| Earned Premium ($000) | 80,948 | 18,036 |
| Written Premium ($000) | 82,583 | 18,498 |
| Earned Exposures | 84,115 | 19,712 |
| Written Exposures | 87,476 | 20,217 |
Calculate the fixed expense fee per exposure.
Part a (1.75 points)
Answer this question and see the worked solution