Faro Retirement Residences ("Faro") is a fictitious company used for this Assignment. Faro is an operator and investor in senior living centers throughout Canada. Faro has five (5) key departments: Finance, Marketing, Maintenance, Operations and Construction. Their previous Corporate Risk Office ("CRO") retired and recently, a new CRO was hired. Faro will be used for both Assignment 1 and 2. The Faro executive board has requested that the CRO perform a complete review of the insurance program starting with the liability insurance program. The commercial general liability insurance program currently has a $50,000 deductible. The CRO has located five (5) years of commercial general liability losses, refer to the Faro Retirement Residence Loss Data (201 - 20X5) Excel spreadsheet. Use the information in the Excel spreadsheet and information provided in the questions below to complete this Assignment. Note, the losses stated in the 30,42,54 and 66 Months columns has already been limited to $50,000. Question 1 (10 Marks) a) For losses greater than $50,000, limit the losses to $50,000 per occurrence. b) Create a loss triangle showing the total incurred losses. Question 2 (10 Marks) a) Calculate period to period loss developinent factors b) Calculate the Months to Ultimate. Show your calculations. You may use the formula function within Excel. Faro Retirement Residences ("Faro") is a fictitious company used for this Assignment. Faro is an operator and investor in senior living centers throughout Canada. Faro has five (5) key departments: Finance, Marketing, Maintenance, Operations and Construction. Their previous Corporate Risk Office ("CRO") retired and recently, a new CRO was hired. Faro will be used for both Assignment 1 and 2. The Faro executive board has requested that the CRO perform a complete review of the insurance program starting with the liability insurance program. The commercial general liability insurance program currently has a $50,000 deductible. The CRO has located five (5) years of commercial general liability losses, refer to the Faro Retirement Residence Loss Data (201 - 20X5) Excel spreadsheet. Use the information in the Excel spreadsheet and information provided in the questions below to complete this Assignment. Note, the losses stated in the 30,42,54 and 66 Months columns has already been limited to $50,000. Question 1 (10 Marks) a) For losses greater than $50,000, limit the losses to $50,000 per occurrence. b) Create a loss triangle showing the total incurred losses. Question 2 (10 Marks) a) Calculate period to period loss developinent factors b) Calculate the Months to Ultimate. Show your calculations. You may use the formula function within Excel
