Question
Liability Exposures Property Exposures Amount of Loss Probability of Loss Amount of Loss Probability of Loss $8,000,000 .015 $4,000,000 .035 $0 .985 $0 .965 If
| Liability Exposures | Property Exposures | ||
| Amount of Loss | Probability of Loss | Amount of Loss | Probability of Loss |
| $8,000,000 | .015 | $4,000,000 | .035 |
| $0 | .985 | $0 | .965 |
If the premium loading for the liability exposure is 35% of expected losses, what is the fair insurance premium for the liability exposure? (Dont be concerned with the time value of money.)
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Fundamentals Of Financial Management
Authors: James C Van Horne
3rd Edition
0133393410, 978-0133393415
