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9 . 1 3 ( * ) For a certain group, aggregate claims are uniformly distributed over ( 0 , 1 0 ) . Insurer

9.13(*) For a certain group, aggregate claims are uniformly distributed over (0,10). Insurer
A proposes stop-loss coverage with a deductible of 6 for a premium equal to the expected
stop-loss claims. Insurer B proposes group coverage with a premium of 7 and a dividend
(a premium refund) equal to the excess, if any, of 7k over claims. Calculate k such that the
expected cost to the group is equal under both proposals.
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