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jk
11-06-2006, 05:03 PM
We seem to agree that the retro premium was capped at the maximum, but I'm sure they won't give full credit unless you get the "raw" premium correct, and we're diverging on that.

I said that:
SP = (100,000+20,000)*1.05 = 126,000
BP=20,000+15,000 = 35,000
Primary converted losses = 455,000*1.1 = 500,500
Excess charge = 126,000*.25*1.1 = 34,650
Retro premium = (35,000+500,500+34,650)*1.05 = 598,658

How did people arrive at other answers?

Purple Princess
11-07-2006, 09:38 AM
We seem to agree that the retro premium was capped at the maximum, but I'm sure they won't give full credit unless you get the "raw" premium correct, and we're diverging on that.

I said that:
SP = (100,000+20,000)*1.05 = 126,000
BP=20,000+15,000 = 35,000
Primary converted losses = 455,000*1.1 = 500,500
Excess charge = 126,000*.25*1.1 = 34,650
Retro premium = (35,000+500,500+34,650)*1.05 = 598,658

How did people arrive at other answers?

I had BP = 20,000 - (1.1-1)*100,000 + 15,000 = 25,000
because expense is expense in GCP (e) not expense in basic.

frank_exams
11-07-2006, 12:07 PM
I had the same BP as PP.

Frank

Maitre_Absolut
11-07-2006, 01:06 PM
I had the same BP as PP.

Frank

So did I.

Its an elementary formula, BP = e - (c-1)E + cI