CAS Exam 7 Spring 2014, Question 6
Study guide: Exam 7
Given the following information from an insurance company's portfolio of policies with a $500,000 deductible:
| Age-to-Age Loss and ALAE Development Factors | 12-24 | 24-36 | 36-48 | 48-60 |
|---|---|---|---|---|
| Unlimited | 1.912 | 1.316 | X | 1.077 |
| Limited to $500,000 | 1.900 | 1.300 | 1.125 | 1.050 |
| Months | 12 | 24 | 36 | 48 | 60 |
|---|---|---|---|---|---|
Limited Severity Relativities (R^L) |
0.980 | 0.974 | 0.962 | 0.944 | 0.920 |
Part a (0.5 points)
Calculate the missing value, X, from the table above.
Part b (0.5 points)
Calculate the excess of $500,000 36-48 month development factor.
Answer this question and see the worked solution
Concepts tested
- Limited Expected Value
- Development Factor
- Deductible
- Excess Loss Development Factor
- Layer of Insurance