4. (30 points) Given the following information for an insurance company: 1. The proposed effective date of the next rate change is January 1, 2014. 2. Rates will be in effect for one year. 3. All policies have twelve-month terms and are written uniformly throughout the year. 4. Calendar year 2012 earned premium at current level is $114,208,050. 12-Month Period Ending Written Premium at Current Rate Level Written Exposure December 31, 2011 104,500,000 110,000 June 30, 2012 113,800,500 121,000 December 31, 2012 123,916,100 133,100 Question: Utilizing one-step trending, calculate the calendar year 2012 projected earned pre- mium at current rate level for use in calculating the rate change. Note that for selecting the annual trend factor, you can use the relation between December 2011 and December 2012. 4. (30 points) Given the following information for an insurance company: 1. The proposed effective date of the next rate change is January 1, 2014. 2. Rates will be in effect for one year. 3. All policies have twelve-month terms and are written uniformly throughout the year. 4. Calendar year 2012 earned premium at current level is $114,208,050. 12-Month Period Ending Written Premium at Current Rate Level Written Exposure December 31, 2011 104,500,000 110,000 June 30, 2012 113,800,500 121,000 December 31, 2012 123,916,100 133,100 Question: Utilizing one-step trending, calculate the calendar year 2012 projected earned pre- mium at current rate level for use in calculating the rate change. Note that for selecting the annual trend factor, you can use the relation between December 2011 and December 2012