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B.15.Fisher
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Aggregate policy
limit to the amt that an insd will need to pay in pol period
can use table M to price ded w aggregated ≡ retro rated w per loss limit
Similarities btwn ded + agg & retro
infinite ded + agg ≡ retro w max but no per loss limit
retro w per loss lim but no max ≡ ded w no agg
Pricing a ded + agg policy
price XS & agg loss simultaneously ≡ Table L
charge for 2 cpts ≡ ins charge + ELF
Pricing ded + agg w Table M
D
closer to M than L → no add'l charge for limited losses
exp limit losses are used instead of ground up loss
need separate table M
D
for each ded (impacts size of loss dist)
Pricing ded + agg w Table M
use lim losses to get ELG
calc
r = agg / lim
LER = ELF / LR
→ get LGAF & ELG
use Table M
Choice of primary loss
only have a small impact if r high or ded low
otherwise ins charge will be inadequate / excessive
$ error greater for large pol low r
% error greater for large pol high r
Author
Exam8
ID
166073
Card Set
B.15.Fisher
Description
Pricing Aggregates on Deductible Policies
Updated
2012-08-15T01:16:49Z
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