QUESTION 2 Sx CALCULATION QUESTION (8 points) Alpha Insurance Company was incorporated on April 1, 2018. Effective April 1, 2018, the Company sold 200 automobile policies for an annual term and collected $1200 from each insured on that date. Then, effective October 1, 2018, Alpha sold another 500 automobile policies, and ollected $1200 from each of those insureds. In the period 4/1/2018-12/31/2018, the company paid claims of $150,000. The claims department estimates that the company would ultimately pay out $75,000 more on claims that have been reported and the actuarial department estimates that there will be $175,000 more paid out for claims that were incurred prior to 12/31/2018 but which have not been reported yet. The actuarial department also estimates that there will be $400,000 additional incurred for claims on accidents that occur after 12/31/18 but before 10/1/19. What is Alpha's earned premium for 2018? What is the unearned premium reserve as of December 31, 2018? What are the loss reserves as of December 31, 2018? What are the incurred claims for 2018? If Alpha earns no investment income and incurs no other expenses, what are its earnings for 2018? Management is convinced that the actuary has been unduly conservative and elects to record IBNR reserves of $100,000 rather than the actuary's estimate of $175,000. What will Alpha's reported earning for 2018 be? Save A Arswers