SOA Exam P Sample Question 155
Study guide: Exam P-1
A policy covers a gas furnace for one year. During that year, only one of three problems can occur:
- i) The igniter switch may need to be replaced at a cost of 60. There is a 0.10 probability of this.
- ii) The pilot light may need to be replaced at a cost of 200. There is a 0.05 probability of this.
- iii) The furnace may need to be replaced at a cost of 3000. There is a 0.01 probability of this.
Calculate the deductible that would produce an expected claim payment of 30.
- A) Less than or equal to 100
- B) Greater than 100 but less than or equal to 150
- C) Greater than 150 but less than or equal to 200
- D) Greater than 200 but less than or equal to 250
- E) Greater than 250
Answer this question and see the worked solution