CAS Exam 8 Fall 2013, Question 5
Study guide: Exam 8
The following increased limits factors (ILFs) are used to price a general liability policy:
| Aggregate Limit (000) | Occurrence Limit (000): $25 | $50 | $100 | $250 | $500 |
|---|---|---|---|---|---|
| $25 | 1.00 | ||||
| $50 | 1.50 | 1.70 | |||
| $100 | 1.80 | 2.05 | 2.50 | ||
| $250 | 2.00 | X | 2.80 | 3.15 | |
| $500 | 2.17 | 2.47 | 3.05 | 3.45 | 3.60 |
Calculate the range of possible values for the $50,000 occurrence / $250,000 aggregate ILF such that all the factors in the table pass the two-dimensional consistency test.
Part a (2.25 points)
Answer this question and see the worked solution