Actuarial Outpost > SoA Fall 2013 #8
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#1
09-15-2018, 10:34 PM
 tbug Note Contributor SOA Join Date: Jul 2006 Studying for G&H Core Favorite beer: Yuengling Posts: 10,827
Fall 2013 #8

The last step adds a 25% load where it clearly states the value should be 20% (admin and profit load). Yes there is a 5% Industry load but that was already applied further up. What am I missing?

ETA: I see this now in a bunch of other places, the "retention of x" is always 1/(1-x) i.e. its going to be x% of the final gross premium.
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Last edited by tbug; 09-17-2018 at 01:42 PM..
#2
09-16-2018, 02:11 AM
 PersevY SOA Join Date: Aug 2018 Posts: 6

yes, it is calculated based on 20% retention: 658.09/0.8=822.61, same for the monthly premium.
#3
09-16-2018, 03:31 PM
 Gandalf Site Supporter Site Supporter SOA Join Date: Nov 2001 Location: Middle Earth Posts: 31,039

Same thing, said slightly differently: A load = 20% of gross premium is 25% of net premium.

BTW, links to your personal C: drive don't work for people on other computers.

Last edited by Gandalf; 09-16-2018 at 06:33 PM..
#4
09-17-2018, 01:40 PM
 tbug Note Contributor SOA Join Date: Jul 2006 Studying for G&H Core Favorite beer: Yuengling Posts: 10,827

Quote:
 Originally Posted by Gandalf Same thing, said slightly differently: A load = 20% of gross premium is 25% of net premium. BTW, links to your personal C: drive don't work for people on other computers.
New computer and I can't for the life of me figure out why it is doing that or how to fix it; I gave up deleted the link.
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