Exam MAS-II Practice Question 4
Study guide: Exam MAS-II
Commercial auto fleets are experience rated with Bühlmann-Straub credibility. The exposure base is the car-year, and the credibility constant has been estimated as K = 150 car-years.
Fleet A has insured 40 vehicles in each of the last 3 years. Its observed claim frequency over that period is 0.12 claims per car-year, and the class frequency is 0.08.
Calculate the credibility-weighted claim frequency for Fleet A.
- A) 0.0800
- B) 0.0808
- C) 0.0884
- D) 0.0978
- E) 0.1022
Answer this question and see the worked solution