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oopsieny
04-19-2005, 01:35 PM
How does IMPF, IMF relate to Earned premium at Present Rate Level? related question from spring 2002 #13 MC.
cranberry
04-19-2005, 02:45 PM
When the Published PMF does not equal the Implicit PMF, you have to make an adjustment to the PPMR to get the EPPR (ie, manual rates <> present rates because the published PMF is off). In this case EPPR= PPMR * (Published PMF/Implicit PMF)
Examinator
05-05-2005, 04:35 PM
Actually this problem is solved by summing the earned premium at present manual rates (PPMR) multiplied by the IPMF. I think somewhere in their article, Graves/Castillo say that the two adjustments needed to bring PPMR to up-to-date EPPR is the application of an exposure trend and the IPMFs. This problem had a 0% exposure trend, making it slightly simpler.