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XYZ Insurance Company is analyzing the risk associated with a new health insurance policy. Based on their analysis, they estimate the expected claim cost per

XYZ Insurance Company is analyzing the risk associated with a new health insurance policy. Based on their analysis, they estimate the expected claim cost per policy per year to be RM5,000. The company wants to apply an expense loading of 25% and a profit loading of 20%. In addition, they have identified an additional risk factor that increases the expected claim cost by 10%. 


Calculate the fair premium for the new health insurance policy, considering all these factors.

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