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An insurance company writes six-month policies. The history of law and coverage change affecting benefit levels is as follows: (a) Calculate the direct benefit change

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An insurance company writes six-month policies. The history of law and coverage change affecting benefit levels is as follows: (a) Calculate the direct benefit change claim adjustment factor for the second half of Accident Year 2021. [5 marks] (b) Calculate the direct benefit change claim adjustment factor for the first half of Policy Year 2021. [5 marks]

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