CAS Exam 8 Fall 2012, Question 20
Study guide: Exam 8
An Alaska workers compensation insured has standard premium of $2,000,000. The insured is interested in a large dollar deductible policy with a deductible of $225,000 and an aggregate of $2,850,000.
Assume the expected unlimited loss and ALAE ratio is 75%, and the risk is in hazard group B.
Calculate the total expected loss and ALAE for the large dollar deductible policy.
Part a (3 points)
Answer this question and see the worked solution