Question
Houses with a Coverage A limit of $100,000 and $1,000 deductible have a record of losses as follows: Year Frequency Severity Pure Premium 2017 0.05
- Houses with a Coverage A limit of $100,000 and $1,000 deductible have a record of losses as follows:
| Year | Frequency | Severity | Pure Premium |
| 2017 | 0.05 | 40000 | 2000 |
| 2016 | 0.06 | 30000 | 1800 |
| 2015 | 0.04 | 62500 | 2500 |
| 2014 | 0.05 | 46000 | 2300 |
| 2013 | 0.045 | 50000 | 2250 |
What would you recommend charging for the premium on a new policy of this type? Justify your answer.
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
978-0077398194
