Assume the following:

1. Pinnacle Insurance Company is formed 6/30/18 with $12MM of capital (surplus).
2. Pinnacle sells one commercial insurance policy on 10/1/18 that provides 12 months of coverage, with premium of $10MM.
3. A $3MM claim occurs in October and is paid on 11/30/18.
4. Pinnacle learns of another claim that occurred in late December 2018, which it estimates will amount to $4MM, and will be paid in January 2019.
5. Expenses for the period 6/30 to 12/31/18 are $1.5MM
6. Pinnacle sells no more business in 2019.
7. Other (new) claims arise and are paid in 2019 for $3MM.
8. It appears by the end of 2019 that no more claims need be paid for this policy.
9. Expenses in 2018 are $2MM.
10. Investment income in year 2018 is $0 and in 2019 is $0.5MM

Compute: (Each question worth approximately 8 points)

1. Unearned Premium Reserve at the end of 2018
2. Loss (or Claim) Reserve at the end of 2018
3. Earned Premiums for 2018
4. Incurred Claims for 2018
5. Earnings for 2018
6. Surplus at the end of 2018
7. Unearned Premium Reserve at the end of 2019
8. Claim Reserve at the end of 2019
9. Earned Premiums for 2019
10. Incurred Claims for 2019
11. Earnings for 2019
12. Surplus at the end of 2019