When estimating the loss reserves in car insurance, the ________________ is used to assign a loss value to each claim. This is because the individual loss amounts are insignificant while the number of claims is large. a. Judgment method b. Loss ratio method c. Average value method

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter10: Managing Property And Liability Risk
Section10.1: Risk And Risk Management
Problem 4CC
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When estimating the loss reserves in car insurance, the ________________ is used to assign a loss value to each claim. This is because the individual loss amounts are insignificant while the number of claims is large.

a.

Judgment method

b.

Loss ratio method

c.

Average value method

d.

Tabular method

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