SOA Exam P Sample Question 7
Study guide: Exam P-1
An insurance company estimates that 40% of policyholders who have only an auto policy will renew next year and 60% of policyholders who have only a homeowners policy will renew next year. The company estimates that 80% of policyholders who have both an auto policy and a homeowners policy will renew at least one of those policies next year.
Company records show that 65% of policyholders have an auto policy, 50% of policyholders have a homeowners policy, and 15% of policyholders have both an auto policy and a homeowners policy.
Using the company's estimates, calculate the percentage of policyholders that will renew at least one policy next year.
- A) 20%
- B) 29%
- C) 41%
- D) 53%
- E) 70%
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