Anon123
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The difference in example 2 is that the amount of liquidation is still less than the actual loss. If the liquidation is greater than the loss and premium, the policyholder would be given more? Say I had a $50K loss, $1K in unearned premium, and t…
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In the solution to part b, I believe only the attributable expenses are included in the ISE. Is this a mistake in the solution?
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I am confused about the non-attributable expenses - it looks like they are not considered at all in the solution, but your response above says they are?