CAS Exam 8 Fall 2012, Question 18
Study guide: Exam 8
The table below provides the actual loss history for 10 similar risks:
| Risk | Sum of Losses Under $200,000 per Accident | Individual Accidents Greater Than $200,000: Accident 1 | Accident 2 |
|---|---|---|---|
| 1 | $300,000 | ||
| 2 | $400,000 | ||
| 3 | $500,000 | ||
| 4 | $600,000 | ||
| 5 | $700,000 | ||
| 6 | $800,000 | ||
| 7 | $900,000 | ||
| 8 | $1,000,000 | $300,000 | |
| 9 | $1,100,000 | $600,000 | |
| 10 | $1,200,000 | $200,000 | $1,400,000 |
| Total | $7,500,000 | $1,100,000 | $1,400,000 |
Construct Table L charges for a loss limit of $500,000 at entry ratios of 1.10, 1.30, 1.60, 1.90 and 2.10.
Part a (2 points)
Answer this question and see the worked solution