last problem

[A-Head]

Was this the problem with the LDD policy with a $X per accident limit and $2,500,000 aggregate limit? They also gave the limited expected losses of $1,000,000 and expected unlimited losses of $1,500,000 (I think this was all there).

I took the excess losses of $500,000 and added the insurance charge of $1,000,000xTable M charge at entry ratio 2.5 and whatever ELG I came up with. Anyone else remember this at all?

[HankMorgan]

I think this was a Fisher problem. I got a charge of 55,000, but also added 500,000 for the expected per claim loss cost ($1.5m - $1.0m).

So my answer was 555,000

[carenthir_dm]

Yep, $500k plus the charge, though my charge wasn't $55k exactly. Entry ratio 2.5 is right, and I got loss group 25, which put the table M factor at 0.03629, or something like that.

[KindGrind]

I think I got ELG = 23....

I got 2.5, too.

LUGS = 1 500 000 * 1.2 * (1 + 0.8 (500 / 1500))/(1-500/1500)

I wasnt sure about the LER...I would have guessed 1000 / 1500 intuitively, but it was giving me ELG 19 which is not onn the table

I think I got something around 525 000 or something

[by234]

I think the group difference is due to the tables (with different effective date) used to look up the ELG. Based on the latest one, I believe the ELG is 25.

[GefilteFish144]

25 sounds right to me. It was the same one in that retro rating insurance charge question, so I had already marked the column in the manual.

[ed999]

yes. i think i got 536.29 K

[KindGrind]

is something wrong with my LUGS calculation?

I get LUGS = 3 420 000. Anyone has the table? What is the ELG for 3 420 000?

[Avi]

I somehow recall Group 25, and an answer of around 551K.

[ed999]

I also got .03629 as the charge, and then did " .03629*1000K + 500K " to get 536.3