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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 property exposure is 25% of expected losses, what is the fair insurance premium for the property exposure? (Dont be concerned with the time value of money.)
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