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Let X be a distribution of claims as follows: Aggregate claims paid in the layer 300,000 Amount of individual Number of claims in claim the layer OsXS 1000 1000 10,000 600 1,800,000 1,900,000 300 100 a. A policy limit of 10,000 is put into effect, determine total expected aggregate claims under the policy limit. b. The original unadjusted losses totaled $3,000,000. What percent reduction in total claims was achieved by implementing the $10,000 policy limit. c. Suppose that instead of a policy limit, i deductible of $1,000 was implemented. Determine the total aggregate claims after the deductible is applied. d. What is the Loss elimination ratio for the $1,000 deductible. i.e. what is the percentage reduction in total aggregate claims after the deductible is applied?

Let X be a distribution of claims as follows: Aggregate claims paid in the layer 300,000 Amount of individual Number of claims in claim the layer OsXS 1000 1000 10,000 600 1,800,000 1,900,000 300 100 a. A policy limit of 10,000 is put into effect, determine total expected aggregate claims under the policy limit. b. The original unadjusted losses totaled $3,000,000. What percent reduction in total claims was achieved by implementing the $10,000 policy limit. c. Suppose that instead of a policy limit, i deductible of $1,000 was implemented. Determine the total aggregate claims after the deductible is applied. d. What is the Loss elimination ratio for the $1,000 deductible. i.e. what is the percentage reduction in total aggregate claims after the deductible is applied?

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Let X be a distribution of claims as follows: Aggregate claims paid in the layer 300,000 1,800,000 1,900,000 Amount of individual Number of claims in claim the layer OSXS 1000 1000 < XS 10,000 600 300 X> 10,000 100 a. A policy limit of 10,000 is put into effect, determine total expected aggregate claims under the policy limit. b. The original unadjusted losses totaled $3,000,000. What percent reduction in total claims was achieved by implementing the $10,000 policy limit. c. Suppose that instead of a policy limit, deductible of $1,000 was implemented. Determine the total aggregate claims after the deductible is applied. d. What is the Loss elimination ratio for the $1,000 deductible. i.e. what is the percentage reduction in total aggregate claims after the deductible is applied?
Transcribed Image Text:Let X be a distribution of claims as follows: Aggregate claims paid in the layer 300,000 1,800,000 1,900,000 Amount of individual Number of claims in claim the layer OSXS 1000 1000 < XS 10,000 600 300 X> 10,000 100 a. A policy limit of 10,000 is put into effect, determine total expected aggregate claims under the policy limit. b. The original unadjusted losses totaled $3,000,000. What percent reduction in total claims was achieved by implementing the $10,000 policy limit. c. Suppose that instead of a policy limit, deductible of $1,000 was implemented. Determine the total aggregate claims after the deductible is applied. d. What is the Loss elimination ratio for the $1,000 deductible. i.e. what is the percentage reduction in total aggregate claims after the deductible is applied?
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