CAS Exam 7 Spring 2017, Question 17
Study guide: Exam 7
Given the following information:
- Premium Development to Loss Development (PDLD) at 3rd retro adjustment: 0.40
- PDLD at 4th retro adjustment: 0.25
- Cumulative loss development factor at 2nd retro adjustment: 1.60
- Cumulative loss development factor at 3rd retro adjustment: 1.25
- Assume all losses are settled at the 4th retro adjustment.
Calculate the cumulative PDLD ratio at the 3rd retro adjustment.
Part a (1 point)
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