Problem 4 You are given the following information: i) A rate filing is based on experience in AY3 and AY4, with 40% weight on AY3 and 60% weight on AY4. ii) Developed losses for the two years are 355,000 and 492,000 respectively. iii) Earned Premiums at current years are 575,000 in CY3 and 842,000 in CY4. iv) The annual trend factor is 4%. v) Rates are effective on 4/1/CY7 for two years. vi) All policies are two-year policies. vii) The permissible loss ratio is 70%. Calculate the indicated rate change. Problem 4 You are given the following information: i) A rate filing is based on experience in AY3 and AY4, with 40% weight on AY3 and 60% weight on AY4. ii) Developed losses for the two years are 355,000 and 492,000 respectively. iii) Earned Premiums at current years are 575,000 in CY3 and 842,000 in CY4. iv) The annual trend factor is 4%. v) Rates are effective on 4/1/CY7 for two years. vi) All policies are two-year policies. vii) The permissible loss ratio is 70%. Calculate the indicated rate change