SOA Exam FAM Sample Question 68
Study guide: Exam FAM
You are given the following earned premiums for three calendar years:
| Calendar Year | Earned Premium |
|---|---|
| CY5 | 7,706 |
| CY6 | 9,200 |
| CY7 | 10,250 |
All policies have a one-year term and policy issues are uniformly distributed through each year.
The following rate changes have occurred:
| Date | Rate Change |
|---|---|
| July 1, CY3 | + 7% |
| Nov. 15, CY5 | – 4% |
| October 1, CY6 | + 5% |
Rates are currently at the level set on October 1, CY6.
Calculate the earned premium at the current rate level for CY6.
- A) 9300
- B) 9400
- C) 9500
- D) 9600
- E) 9700
Answer this question and see the worked solution