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Suppose a group of 3 0 0 people seeks out an insurance company to underwrite health insurance for its members. The expected medical spending for

Suppose a group of 300 people seeks out an insurance company to underwrite health insurance for its members. The expected medical spending for the group is $250,000. What will the average premium be if the health insurance company estimates the premium adding net loading costs of 20 percent?
A. $933.33
B. $1,000
C. $866.67
D. $833

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