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TIA Clark

Posted 09-23-2009 at 10:01 PM by Hiu

TIA Clark question Quiz 11, #5 - 09-03-2008, 06:57 PM


Here's my question. In the numerator of the solution below, shouldn't [E; 500,000] be [E; 500,000/1.1] and if not, why? Thanks.


You are given the following information:
A ceding company purchases a property per risk excess of loss treaty
ALAE is included with loss
E[x;Z] = Z * (0.4)Z/1,000,000
ALAE as a percent of loss capped...
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