$ S -8 An insurance company has the following extimates of policy payouts for the upcoming year: 59 0 1% of the population will each have a claim of: 520,000.00 71 5% of the population will each have a claim of: $ 34,000.00 72 5% of the population will each have a claim of: $ 10,000.00 73 30% of the population will each have a claim of: 950.00 74 75 Assuming a representative pool of 1,000 customers, how much money is the insurance company expecting to pay out over the next year? 76 77 Answer: 78 79 Determine the annual "breakeven" premium per customer for the insurance company (ie the profit is zero, 1,000 customers). 80 81 Answer: 82 83 of the insurance company intends to earn $50,000 in profit, what is the minimum annual premium it can charge its 1,000 customers? 84 85 Answer: 86 87 What is the answer to the first question if there is a deductible" of $400 per customer and a "cap" of $400,000 per customer? PART 1 COMPUTATION PART 2 MULTIPLE CHOICE O Do Not Erase This Sheet PERFORMA if the insurance company intends to earn $50,000 in profit, what is the minimum annual premium it can charge its 1,000 customers? Answer: What is the answer to the first question if there is a deductible" of $400 per customer and a "cap" of $400,000 per customer? Note: assume the cap is applied in excess of the deductible Answer: Assuming the "deductible" and "cap" in the above question are applied, what is the new annual "breakeven" premium per customer assuming 1,000 customers? Answer: 5 Adjust the previous answer assuming a reduced "cop" of $300,000 5 7 3