1. Suppose Annie's loss distribution is as follows: Loss Probability $5,0000.004 $1,0000.006 $2500.055 $0 0.935 Assume the only administrative cost is the cost of processing a claim, which equals $500 regardless of the claim size. Ignoring moral hazard, adverse selection, the time value of money, and capital costs, the cost of providing insurance is the sum of expected claim costs and expected processing costs. The expected claim cost is the expected amount the insurer will have to pay out to cover a loss. For example, if the loss is $1,000, then the insurer will have to pay $1,000 for the claim. Expense ratio - asso b) What would be the expense ratio for a policy with full coverage (i.e., no deductible)? expenses associated with underuriting, acquirina. ond seruicing premiums writtan Enter your answer as a decimal, not a percentage, rounded to four decimal places 1. Suppose Annie's loss distribution is as follows: Loss Probability $5,0000.004 $1,0000.006 $2500.055 $0 0.935 Assume the only administrative cost is the cost of processing a claim, which equals $500 regardless of the claim size. Ignoring moral hazard, adverse selection, the time value of money, and capital costs, the cost of providing insurance is the sum of expected claim costs and expected processing costs. The expected claim cost is the expected amount the insurer will have to pay out to cover a loss. For example, if the loss is $1,000, then the insurer will have to pay $1,000 for the claim. Expense ratio - asso b) What would be the expense ratio for a policy with full coverage (i.e., no deductible)? expenses associated with underuriting, acquirina. ond seruicing premiums writtan Enter your answer as a decimal, not a percentage, rounded to four decimal places