SOA Exam FAM Sample Question 64
Study guide: Exam FAM
You are given the following loss data:
| Size of Loss | Number of Claims | Ground-Up Total Losses |
|---|---|---|
| 0 – 99 | 1100 | 58,500 |
| 100 – 249 | 400 | 70,000 |
| 250 – 499 | 300 | 120,000 |
| 500 – 999 | 200 | 150,000 |
| > 999 | 100 | 200,000 |
| Total | 2100 | 598,500 |
Calculate the percentage reduction in loss costs by moving from a 100 deductible to a 250 deductible.
- A) 25%
- B) 27%
- C) 29%
- D) 31%
- E) 33%
Answer this question and see the worked solution