Finance Assignment | Professional Writing

3. There is a lot of competition for gun collection policies because many companies write this as accommodation for policyholders who already have their Homeowners and Auto Insurance with them. If you took the entire rate increase dictated by the results in question 2, you would not be competitive with these competing companies who charge a \$6.75 rate. Using the Judgment Rating Method, what rate would you charge for your renewing gun collection policies. This is a subjective answer. (2 points) Ratemaking Methods .Loss Ratio Method The expected loss ratio is subtracted from the actual LR The difference is then divided by the expected loss ratio The resulting % difference becomes the recommended rate change LOSS RATIO RATEMAKING METHOD – The loss ratio method uses two loss ratios during the selected experience period: Actual loss ratio =incurred losses / earned premiums Expected loss ratio =100% –

Don't use plagiarized sources. Get Your Assignment on
Finance Assignment | Professional Writing
Just from \$13/Page

Expense provision Rate changer actual loss ratio – expected loss ratio Negative arate reduction Positive arate increase Calculate a rate change using the loss ratio method – Actual Earned Premium \$4,500,000.00 Actual Incurred Losses and LR Expenses = \$3,000,000.00 o 30/45 = 66.66% is actual loss ratio, . The actual loss ratio = 66.66% . The projected loss ratio is 75% Calculate a rate change using the loss ratio method Actual Earned Premium \$4,500,000.00 • Actual incurred Losses \$3,000,000.00 This loss ratrio is 66.66% . Projected loss ratio 75% 66.66% – .75% = -8.3% – – 11.11% .75% 75% Company can reduce rates by 11% What if the projected loss ratio was 60% and the actual loss ratio was 77%: 77 – 60 = 28.3% rate increase is needed 60 Format ArrangeTools Slide Show WINDOW Help Insurance Operations CH 7 2019 033020 actuarial – Compatibility Mode-Saved to my Mac 15 Animations Slide Show Review View Share Ocor Loss Ratio Measures what you pay out in losses compared to your premium income. Loss ratio = Incurred losses plus loss adjustment expenses (divided by) the earned premium 65% or less is good Pure Premium Ratemaking Method – Step 1 Calculate the pure premium for \$100,000. Homeowners policies in Clarion County: \$ Incurred losses # of exposure units Example: \$975,000 paid losses and loss adjustment expense 3,000 houses insured Pure Premium = \$325 for a Homeowners Policy (step 1),

Get Finance homework help today

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
English 101
Excellent.
Customer 458101, April 23rd, 2022
Other
Smart response.
Customer 462457, April 13th, 2022
Web Design
Well done
Customer 452441, April 15th, 2022
Sociology
Excellent and fast work! Thanks!
Customer 454259, April 11th, 2020
Good
Customer 463473, November 1st, 2022
Environmental studies and Forestry
Good work.
Customer 458115, May 29th, 2022
Military
Very good job, thanks.
Customer 456821, December 20th, 2022
Communications
best writer and customer service. Thanks Tony!
Customer 462787, August 30th, 2022
Military
Excellent
Customer 456821, November 12th, 2022
Management
Excellent. Thank you. I am grateful and I am thankful. I hope you have a wonderful day :)
Customer 454227, May 10th, 2020
Military
Good job
Customer 456821, May 13th, 2022
Military
Excellent job.
Customer 456821, May 11th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend