CAS Exam 8 Fall 2014, Question 12
Study guide: Exam 8
The following Lee diagrams depict the loss experience of a group of 10 similar risks; one for unlimited losses and the other for limited losses.
Part a (2.25 points)
Calculate the Table L charges at loss ratios of 0% to 100% in 20% increments.
Part b (0.75 points)
Describe what the Table L savings at an entry ratio of 0.4 reflects, assuming an expected unlimited loss of $500,000 and a per accident limit of $100,000.
Answer this question and see the worked solution