FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Suppose that the incurred losses are $800,000 in one policy period. Mr. Arthur has a retrospective rating plan. Based on the following table, at

image text in transcribed
2. Suppose that the incurred losses are $800,000 in one policy period. Mr. Arthur has a retrospective rating plan. Based on the following table, at the end of this policy period Arthur would still need to pay the insurer $ Standard Premium $800,000 Basic premium 20% Maximum premium $1,000,000 Minimum premium $400,000 Excess Loss Premium Factor 10% Loss Conversion Factor 1.20 Tax Multiplier 1.10

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Teaching Public Budgeting And Finance

Teaching Public Budgeting And Finance

Authors: Meagan M. Jordan, Bruce D. McDonald III

1st Edition

1032146680, 978-1032146683

More Books

Students also viewed these Finance questions

Question

★★★★★
An inclined oil manometer is used to measure pressure in a wind tunnel. Determine the specific gravity of the oil if a pressure change of 323 pascals causes a 15-cm reading change on the 15 incline.

Answered: 1 week ago

Question

★★★★★
A firm is engaged in producing two products, A and B. Each unit of product A requires 2 kg of raw material and 4 labour hours for processing, whereas each unit of product B requires 3 kg of raw...

Answered: 1 week ago

Question

★★★★★
8.9 Calculate the margin of error in estimating a bino- mial proportion p using samples of size n = 100 and the following values for p: a. p = 0.1 d. p = 0.7 b. p = 0.3 c. p = 0.5 e. p = 0.9 f. Which...

Answered: 1 week ago

Question

★★★★★
Presented below are two independent revenue arrangements for Colbert Company. Instructions Respond to the requirements related to each revenue arrangement. (a) Colbert sells 3D printer systems....

Answered: 1 week ago

Question

★★★★★
https: / / www . google.com / search ? q = 1 . 7 + engineering + applied + exercise % 3 A + finite + difference + method&ie = UTF - 8 &oe = UTF - 8 &hl = en - us&client = safari#ip = 1 &vhid =...

Answered: 1 week ago

Question

★★★★★
On January 1, 2022, Katniss Company borrowed P5,000,000 on a 10% three-year interest-bearing note. The net proceeds from the borrowing amounted to P5,000,000. Interest is payable annually every...

Answered: 1 week ago

Question

★★★★★
ABL a supplier of sailing equipment was incorporated 10 years ago and is 60% owned by Xavier Ltd. ABL has been a very successful business, averaging annual profit of $5 million. However, during the...

Answered: 1 week ago

Question

★★★★★
Product A accounts for 75% of a company's total sales revenue and has a variable cost equal to 60% of its selling price. Product B accounts for 25% of total sales revenue and has a variable cost...

Answered: 1 week ago

Question

★★★★★
MAKE A COST OF GOODS MANUFACTURED AND SOLD STATEMENT BASED ON THE PROBLEM 1. Problem 1 . JOB ORDER COSTING IN A MANUFACTURING COMPANY. Palmera Company is a manufacturing firm that uses job-oder...

Answered: 1 week ago

Question

★★★★★
Pharoah Corporation was organized on January 1, 2021. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 104,000 shares of $10 par value common stock. At...

Answered: 1 week ago

Question

★★★★★
When we analyze data for the census tracts in the greater Los Angeles area, we find no significant correlation between median tax bill and median lot size. Yet a considerable positive correlation...

Answered: 1 week ago

Question

★★★★★
From a point along a straight road, the angle of elevation to the top of a hill is 36. From 270 ft farther down the road, the angle of elevation to the top of the hill is 23. How high is the hill?...

Answered: 1 week ago

Question

★★★★★
Assess Occupational Information Network (O*NET) and its importance to human resource (HR) management.

Answered: 1 week ago

Question

★★★★★
Assess three steps in the selection process.

Answered: 1 week ago

Question

★★★★★
Identify the steps in job analysis.

Answered: 1 week ago

Previous Question Next Question