Gampel Insurance Company is preparing several insurance proposals for Mirror Lake Manufacturing. The estimated loss distribution for Mirror Lake is as follows: This loss distribution is the same for each question in this assignment. Each full question is worth 20 points (5 points per part) 4. Assume: - Losses occur and are paid one year from policy inception - Acquisition expenses are 15% of fair premium and are paid at policy inception - Other general expenses are paid evenly over the one year policy period and are 5% of the fair premium (assume payment at the midpoint of the policy period) - Claim settlement expenses are $400 per claim, and are payable when the losses are paid - Fair profit provision is 10% of fair premium - Interest rate is 5%. a. What is Gampel's estimate of the fair premium? b. What is the provision in the fair premium for acquisition expenses? c. What is the provision for other general expenses? d. What is the fair profit loading for the premium? Gampel Insurance Company is preparing several insurance proposals for Mirror Lake Manufacturing. The estimated loss distribution for Mirror Lake is as follows: This loss distribution is the same for each question in this assignment. Each full question is worth 20 points (5 points per part) 4. Assume: - Losses occur and are paid one year from policy inception - Acquisition expenses are 15% of fair premium and are paid at policy inception - Other general expenses are paid evenly over the one year policy period and are 5% of the fair premium (assume payment at the midpoint of the policy period) - Claim settlement expenses are $400 per claim, and are payable when the losses are paid - Fair profit provision is 10% of fair premium - Interest rate is 5%. a. What is Gampel's estimate of the fair premium? b. What is the provision in the fair premium for acquisition expenses? c. What is the provision for other general expenses? d. What is the fair profit loading for the premium