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The insurer is underwriting 3-month policies covering a specific risk for the premium of 300. A sale of a given quarter is evenly distributed over

The insurer is underwriting 3-month policies covering a specific risk for the premium of 300. A sale of a given quarter is evenly distributed over the quarters period. The same applies to claims: they are evenly distributed over the 3-month period of policys validity.

Year 2012 2013 2014 Quarter Q4 Q1 Q2 Q3 Q4 Q1 No of written policies 8 000 10 000 12 000 14 000 16 000 18 000

Calculate the premium reserve as of October 31, 2013.

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