Assume for 10k for 2019

Detalls Hole-in-One Coverage: A prize of $10,000, $20,000 or $50,000 is available to purchase - If someone gets a hole-in- one during a regulation golf tournament. You need to figure how much to charge for each prize. MMI does not have any of their own statistical data, but they do know: Guardian Insurance offered this coverage in the past and they usually had $150,000 in prize money awarded each year-based on an average of four holes-in-one per year. Statistics below. MMI will have one staff member assigned to manage the project half time-- they are paid $60,000 per year. (.5 fte = $30k). MMI wants a $50,000 profit each year (this will pay for their overall marketing of MMI), You also need to pay the insurance broker a commission of 10% for each policy sold. GUARDIAN INSURANCE EXPERIENCE - To the Best of our knowledge Year Total Paid Prize Sizes Number of Golfers Number of prizes 6 5 Number of Golf Tournaments Insured 1350 1250 1180 1110 1040 972 830 690 194400 180000 170000 160000 150000 140000 120000 100000 2019 2018 2017 2016 2015 2014 2013 2012 4 7 3 2 3 3 200,000 150,000 120,000 230,000 110,000 40,000 60,000 60,000 $10k, $20k(2), $50k (3) $10K, $20K(2), $50k(2) $10k(2), $50(2) $10k(3), $50K(4) $10K, $50K(2) (new prize of $50k this year) $20 (2) $20K(3) $20 (3) Outcome-Due in Dropbox by Midnight October 29, 2020 11:59 pm. 50 Marks. 1. Determine the correct price (premium) to charge for the $10,000, 520,000 and $50,000 prize on a per tournament basis. 144 people play in each golf tournament. It is suggested that you charge the tournament a premium instead of charging the golfers individually. You need to show your calculations in your submission Make sure you double check your pricing - test your price with claim payment scenarios. 2 You need to also come up with some rules for managing the insurance product that will be sold by either agents, brokers, or online. You decide how it is sold You decide on the rules. 3 Do you allow professional or amateur golfers - tell me why? Is the hole shorter for women golfers versus men - tell me why? What is the minimum length of the hole in one price hole (100 yards, 125 yards, 150 yards, 175 yards, 200 yards)? Tell me why it needs to be that long 5 What happens if people try to cheat? What rules do you need to prevent cheating? Bonus marks for valid unique ideas on how to manage the Hole-in-One insurance 4 6 Detalls Hole-in-One Coverage: A prize of $10,000, $20,000 or $50,000 is available to purchase - If someone gets a hole-in- one during a regulation golf tournament. You need to figure how much to charge for each prize. MMI does not have any of their own statistical data, but they do know: Guardian Insurance offered this coverage in the past and they usually had $150,000 in prize money awarded each year-based on an average of four holes-in-one per year. Statistics below. MMI will have one staff member assigned to manage the project half time-- they are paid $60,000 per year. (.5 fte = $30k). MMI wants a $50,000 profit each year (this will pay for their overall marketing of MMI), You also need to pay the insurance broker a commission of 10% for each policy sold. GUARDIAN INSURANCE EXPERIENCE - To the Best of our knowledge Year Total Paid Prize Sizes Number of Golfers Number of prizes 6 5 Number of Golf Tournaments Insured 1350 1250 1180 1110 1040 972 830 690 194400 180000 170000 160000 150000 140000 120000 100000 2019 2018 2017 2016 2015 2014 2013 2012 4 7 3 2 3 3 200,000 150,000 120,000 230,000 110,000 40,000 60,000 60,000 $10k, $20k(2), $50k (3) $10K, $20K(2), $50k(2) $10k(2), $50(2) $10k(3), $50K(4) $10K, $50K(2) (new prize of $50k this year) $20 (2) $20K(3) $20 (3) Outcome-Due in Dropbox by Midnight October 29, 2020 11:59 pm. 50 Marks. 1. Determine the correct price (premium) to charge for the $10,000, 520,000 and $50,000 prize on a per tournament basis. 144 people play in each golf tournament. It is suggested that you charge the tournament a premium instead of charging the golfers individually. You need to show your calculations in your submission Make sure you double check your pricing - test your price with claim payment scenarios. 2 You need to also come up with some rules for managing the insurance product that will be sold by either agents, brokers, or online. You decide how it is sold You decide on the rules. 3 Do you allow professional or amateur golfers - tell me why? Is the hole shorter for women golfers versus men - tell me why? What is the minimum length of the hole in one price hole (100 yards, 125 yards, 150 yards, 175 yards, 200 yards)? Tell me why it needs to be that long 5 What happens if people try to cheat? What rules do you need to prevent cheating? Bonus marks for valid unique ideas on how to manage the Hole-in-One insurance 4 6