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A customer slips and falls in a grocery store and sustains severe injuries that require multiple surgeries to rectify. A liability claim is filed against

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A customer slips and falls in a grocery store and sustains severe injuries that require multiple surgeries to rectify. A liability claim is filed against the store in an amount of $300,000, which is assumed to be the full value including indemnity payments and expenses such as attorney's fees, if the store is 100 percent responsible. However, after further investigation, the loss claim adjuster finds out that the customer was intoxicated during the slip and fall, and thus, there are three possible loss scenarios: 100 percent (the store is completely at fault), 50 percent, and zero percent (for the store). Also, the claims professional estimates that the probabilities of a jury finding for each loss scenario are 30, 40, and 30 percent, respectively. If the case reserve is the expected value of loss liabilities, how much should the insurer set the case reserve? $150.000 $165,000 $275,000 $300.000

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