Exam MAS-I Practice Question 8
Study guide: Exam MAS-I
Ground-up losses are exponential with mean 1,000. A policy has an ordinary deductible of 500 and no limit. Next year all losses increase by 10%, and the deductible stays at 500.
By what percentage do the expected payment per loss and the expected payment per payment each increase?
- A) Per loss 10.0%; per payment 10.0%
- B) Per loss 10.0%; per payment 15.1%
- C) Per loss 15.1%; per payment 20.5%
- D) Per loss 15.1%; per payment 15.1%
- E) Per loss 15.1%; per payment 10.0%
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