Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 26, 2024

You work for an insurance company and your boss asks you to calculate the premiums that should be charged for a particular group of clients.

You work for an insurance company and your boss asks you to calculate the premiums that should be charged for a particular group of clients. The expected losses for this group will be $12,000,000 and there are 12,000 clients in this group. The firm's expense ratio is 50%. Calculate the pure premium and the gross premium for this group of clients. Show your work.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood

11th Canadian Edition Volume 2

0135359783, 978-0135359785

More Books

Students also viewed these Accounting questions

Question

★★★★★

Match each definition with its related term by entering the appropriate letter in the space provided. Term Definition 1. Expenses 2. Unearned Revenue 3. Prepaid Expenses 4. Revenues A. A liability...

Answered: 1 week ago

Question

★★★★★

How does the CNL integrate informatics and technology into the daily patient briefings? How does this facilitate sustainability of this frontline strategy?

Answered: 1 week ago

Question

★★★★★

Distinguish between the manifest and latent content of dreams.

Answered: 1 week ago

Question

★★★★★

On January 31, Driftwood Logistics, Inc., issued 10-year, 6% bonds payable with a face value of $13,000,000. The bonds were issued at 94 and pay interest on January 31 and July 31. Driftwood...

Answered: 1 week ago

Question

★★★★★

was the ebay acquisition of half.com strategic or operational? explain

Answered: 1 week ago

Question

★★★★★

2. Prepare multiple-step income statement for fiscal year 2016. NELSON COMPANY Income Statement For Year Ended January 31, 2016 Sales 11495 Sales discounts 2,000 Less: Sales returns and allowances...

Answered: 1 week ago

Question

★★★★★

Given a rectangular hollow box with outer dimensions 125mm x 85mm and constant thickness of 10mm has an ultimate stress of 415 MPa. Modulus of Elasticity of 110 GPa. a. Determine the bending moment M...

Answered: 1 week ago

Question

★★★★★

"Political, economic, and legal environments of country clearly influence the attractiveness of that country as a market or investment site". Do you agree with this statement? Discuss. And explain...

Answered: 1 week ago

Question

★★★★★

Angie sees a sign on the counter of her local gym which says " No-one is allowed to use the equipment if they have not paid current gym fees ". This is an example of:

Answered: 1 week ago

Question

★★★★★

1. Assume the demand function for good Y is as follows: D = 850 + 21+ 15Px 1315 where QD 2 Quantity demanded of good Y, I = Average income, PK 2 Price of good X and PY 2 Price of good Y. (a)...

Answered: 1 week ago

Question

★★★★★

During the 2023 income year, Nilpa (a resident taxpayer) received the following: Net salary from employer (PAYG of $30,000 was withheld) $90,000 Allowance from employer $10,000 Cash prize from...

Answered: 1 week ago

Question

★★★★★

Mary will invest $100 at the end of every month for the next 25 years, starting from next month. What is the future value of her investments at the end of 25 years? Assume an annual interest rate...

Answered: 1 week ago

Previous Question Next Question