The Mammoth Mutual Insurance Company is considering selling Hole-in-One Insurance to their brokers in Alberta. They have never sold this type of coverage and need your help analyzing the data to determine how much to charge the golfers or golf tournaments for the coverage. Details Hole-In-One Coverage: A prize of $10,000, $20,000 or $50,000 is available to purchase if someone gets a hole-inone during a regulation golf tournament. You need to figure how much to charge for each prize. MMI does not have any of their own statistical data, but they do know: Guardian Insurance offered this coverage in the past and they usually had $150,000 in prize money awarded each year based on an average of four holes-in-one per year. Statistics below. MMI will have one staff member assigned to manage the project half time they are paid $60,000 per year. (.5 fte = $30k). MMI wants a $50,000 profit each year (this will pay for their overall marketing of MMI). You also need to pay the insurance broker a commission of 10% for each policy sold. GUARDIAN INSURANCE EXPERIENCE To the Best of our knowledge Number of Golf Tournaments Insured Number of Golfers Year Number of prizes Total Paid Prize Sizes 1350 194400 2019 6 200,000 $10k, $20k(2), $50k (3) 1250 180000 2018 5 150,000 $10K, $20K(2), $50k(2) 1180 170000 2017 4 120,000 $10k(2), $50(2) 1110 160000 2016 7 230,000 $10k(3), $50K(4) 1040 150000 2015 3 110,000 $10K, $50K(2) (new prize of $50k this year) 972 140000 2014 2 40,000 $20k(2) 830 120000 2013 3 60,000 $20K(3) 690 100000 2012 3 60,000 $20k(3) Outcome Due in Dropbox by Midnight October 29, 2020 11:59 pm. 50 Marks. 1. Determine the correct price (premium) to charge for the $10,000, $20,000 and $50,000 prize on a per tournament basis. 144 people play in each golf tournament. It is suggested that you charge the tournament a premium instead of charging the golfers individually. You need to show your calculations in your submission. Make sure you double check your pricing test your price with claim payment scenarios. 2. You need to also come up with some rules for managing the insurance product that will be sold by either agents, brokers, or online. You decide how it is sold. You decide on the rules. 3. Do you allow professional or amateur golfers tell me why? Is the hole shorter for women golfers versus men tell me why? 4. What is the minimum length of the hole in one price hole (100 yards, 125 yards, 150 yards, 175 yards, 200 yards)? Tell me why it needs to be that long. 5. What happens if people try to cheat? What rules do you need to prevent cheating? 6. Bonus marks for valid unique ideas on how to manage the Hole-in-One insurance.