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Assume the following information about an insurance company: (a) They have calculated that they need total assets of $100 million to have a probability of
Assume the following information about an insurance company: (a) They have calculated that they need total assets of $100 million to have a probability of insolvency of 2.5%, (b) they have expected claims costs of $75 million, (c) they have initial surplus of $20 million and (d) they have 100,000 policyholders. What must the premium loading per policyholder be to maintain the probability of insolvency of 2.5%?
Group of answer choices
1000.00
50.00
75.00
750.00
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