CAS Exam 7 Spring 2012, Question 6
Study guide: Exam 7
Given the following information for an insurance company's book of policies with a $250,000 deductible:
| Age-to-Age Loss and ALAE Development Factors | 12-24 | 24-36 | 36-48 | 48-60 | 60-72 |
|---|---|---|---|---|---|
| Limited | 1.720 | 1.151 | 1.072 | 1.025 | 1.011 |
| Excess | 2.577 | 1.412 | 1.350 | 1.281 | 1.316 |
| Age (months) | 12 | 24 | 36 | 48 | 60 | 72 |
|---|---|---|---|---|---|---|
Limited Severity Relativities (R^L) |
0.975 | 0.963 | 0.955 | 0.944 | 0.931 | 0.912 |
Calculate the unlimited 36-72 month development factor.
Part a (1.5 points)
Answer this question and see the worked solution