SOA Exam P Sample Question 543
Study guide: Exam P-1
A renter's insurance policy pays a percentage p of the amount by which each loss exceeds a deductible d. Each policyholder reports a loss if and only if the loss exceeds the deductible.
The variance of a reported loss is v.
Determine the variance of the claim payment resulting from a reported loss.
- A)
pv - B)
p^2v - C)
p(v-d) - D)
p^2(v-d) - E)
(1-p)^2v
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