SOA Exam P Sample Question 535
Study guide: Exam P-1
A policyholder experiences one accident under a health insurance policy and one accident under a dental insurance policy. The health insurance policy reimburses 80% of losses. Losses under this policy have variance 40,000. The dental insurance policy reimburses 90% of losses. Losses under this policy have variance 10,000.
The policyholder's two losses are independent.
Calculate the variance of the policyholder's total unreimbursed loss under these policies.
- A)
1{,}700 - B)
9{,}000 - C)
16{,}300 - D)
33{,}700 - E)
50{,}000
Answer this question and see the worked solution