hamzawayy
Answered

At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

XYZ Insurance Company uses class rating to determine the rate to charge for insurance.
For one type of insurance the pure premium XYZ actuaries calculated is $75 per unit.
If XYZ's expense ratio is 30%, what is the gross rate for this coverage?
O a. $107.14
O b. $96.28
O C. $85.19
O d. $115.62​

Sagot :

Parrain

Answer:  a. $107.14

Explanation:

The gross rate for insurance coverage represents the amount that the insurance provider needs to pay for losses as well as the amount needed to pay for expenses such as sales expenses and still be able to have a profit.

Given the expense ratio and the pure premium is:

= Premium / ( 100 - expense ratio)

= 75 / (100 - 30%)

= $107.14

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.