srinandhegde

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srinandhegde
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  • Oh I think I understand now. Let me confirm my understanding. The base rate is $1666 to account for overall increase of 15%. We had increased the premium for (Terr 1, AOI < 100k) due to minimum requirement and decreased the base rate to keep the …
  • Thank you very much Graham!! It's very clear now.
  • With this new base rate of $1666 how will the minimum premium condition be satisfied? Because $1666*0.5*0.85 for territory 1 x aoi < 100k is still less than $800
  • I did not understand how to account for the policy fee in this problem. How is the policy fee of $50 different from fixed expense of $55? Particularly, say the give the above details and ask us to calculate the indicated average rate change. Do we j…
  • Why have they applied exposure trend to on-level earned premium for part a)? Thanks
  • Thanks for the response. Maybe the question I asked was not worded properly, sorry for that. My question was not on when to use one step or two step trending. I wanted to understand the thought process by which we arrive at trend period (for either …