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Simon Insurance Company is reviewing their personal property premium for a territory. They know the following information: - Incurred losses =$7,734,375 - Loading percentage =20%

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Simon Insurance Company is reviewing their personal property premium for a territory. They know the following information: - Incurred losses =$7,734,375 - Loading percentage =20% - Properties Insured =234,375 (exposure units) a. Using the methods discussed in class, what is the rate per exposure needed to cover losses, and the loading percentage? Calculate the Pure Premium and the Gross Premium per exposure unit. (30 points, 15 for each step) Pure Premium: Gross Premium: Simon Insurance Company is reviewing their personal property premium for a territory. They know the following information: - Incurred losses =$7,734,375 - Loading percentage =20% - Properties Insured =234,375 (exposure units) a. Using the methods discussed in class, what is the rate per exposure needed to cover losses, and the loading percentage? Calculate the Pure Premium and the Gross Premium per exposure unit. (30 points, 15 for each step) Pure Premium: Gross Premium

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