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9 . 1 3 ( * ) For a certain group, aggregate claims are uniformly distributed over ( 0 , 1 0 ) . Insurer
For a certain group, aggregate claims are uniformly distributed over Insurer
A proposes stoploss coverage with a deductible of for a premium equal to the expected
stoploss claims. Insurer B proposes group coverage with a premium of and a dividend
a premium refund equal to the excess, if any, of over claims. Calculate such that the
expected cost to the group is equal under both proposals.
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