21. (6 pts) Reserving Methods You are given the following loss data evaluated as of December 31, 2020. You are also told there is no additional paid loss development after 36 months. Cumulative Paid Losses Accident Development Months Earned Expected Year (AY) 12 24 36 Premium Loss Ratio 2018 4,000 5,200 5,460 10,000 0.550 2019 4,200 5,460 10,000 0.575 2020 4,400 10,000 0.600 Estimate the December 31, 2020 TOTAL loss reserves using each of the following methods: (a) (2 pts) Expected Loss Method (b) (4 pts) Loss Development (Chain-Ladder) Method using simple average LDF selections rounded to 3 decimals. 21. (6 pts) Reserving Methods You are given the following loss data evaluated as of December 31, 2020. You are also told there is no additional paid loss development after 36 months. Cumulative Paid Losses Accident Development Months Earned Expected Year (AY) 12 24 36 Premium Loss Ratio 2018 4,000 5,200 5,460 10,000 0.550 2019 4,200 5,460 10,000 0.575 2020 4,400 10,000 0.600 Estimate the December 31, 2020 TOTAL loss reserves using each of the following methods: (a) (2 pts) Expected Loss Method (b) (4 pts) Loss Development (Chain-Ladder) Method using simple average LDF selections rounded to 3 decimals