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Question 3: (6 points) Given the pure premium is X per exposure, the fixed expenses is $30 per exposure, the variable expenses are 20% of
Question 3: (6 points) Given the pure premium is X per exposure, the fixed expenses is $30 per exposure, the variable expenses are 20% of premium, the profit and contingencies load as a percent of premium is 6%, and the rate per exposure is $500. - Find X. - Find R, the new rate per exposure if the profit and contingencies load changes to 3%, while all other components of the rate stay the same
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