Question
SuperFang 7058 answered the previous question i see there is a follow-up to this. The actual incurred limited would be constant for every claim and
SuperFang 7058 answered the previous question i see there is a follow-up to this.
The actual incurred limited would be constant for every claim and therefore the following table indicate the values of actual primary.
The Actual primary = Actual incurred -actual incurred limited.
Claims | Actual incurred | actual incurred limited | Actual primary |
1 | $375,000 | $249,500 | $125,500 |
2 | $120,000 | $249,500 | $(129,500) |
3 | $50,000 | $249,500 | $(199,500) |
Total | $545,000 | $748,500 | $(203,500) |
The question is?
10 Points
Using the above information, what will be the actual cost for each of the losses for company XYZ as these losses pass through the experience rating formula?
7. 5 Points
What is the formula used to calculate standard workers compensation premium? Give an explanation of each of the components.
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