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4. Using the data below calculate the total loss ratio for 2006 and explain the change in total loss ratio between 2005 and 2006. Show

4. Using the data below calculate the total loss ratio for 2006 and explain the change in total loss ratio between 2005 and 2006. Show your work.

Territory 2005 Earned Premium Distribution LR for Acc Year Ending 2005 2006 Earned Premium Distribution LR for Acc Year Ending 2006

1 15% 0.8830 15% 0.8750

2 35% 0.9420 50% 0.9380

3 25% 0.8360 20% 0.8340

4 25% 0.8280 15% 0.8250

TOTAL 100% 0.8782 100% ?

LR = Loss Ratio= Losses/Premium.

Losses = LR * Premium

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4. Using the data below calculate the total loss ratio for 2006 and explain the change in total loss ratio between 2005 and 2006. Show your work.

Territory	2005 Earned Premium Distribution	LR for Acc Year Ending 2005	2006 Earned Premium Distribution	LR for Acc Year Ending 2006


1	15%	0.8830	15%	0.8750
2	35%	0.9420	50%	0.9380
3	25%	0.8360	20%	0.8340
4	25%	0.8280	15%	0.8250
TOTAL	100%	0.8782	100%	?

LR = Loss Ratio= Losses/Premium.

Losses = LR * Premium