Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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