Actex Friedland 17 A.2

[Aw Yeah]

On this question 100% of the ULAE ratio is applied to both Reported Claims and IBNR for 1985 and 1986. According to Friedland, 50% of the ULAE ratio should be applied to IBNR. Am I missing something or is the solution incorrect here?

[Aw Yeah]

same applies (and perhaps a bit more accurately) to A.5 - I can see how A.2 differs slightly from the examples in the text in that we are dealing with reported claims as opposed to just case reserves.