5) Given the following information, calculate the indicated rate change Historical ExpensePercent Assumed Fixed General...
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5) Given the following information, calculate the indicated rate change Historical ExpensePercent Assumed Fixed General expense Other acquisition Commissions & brokerage Taxes, licenses & fees 100,000 66,000 110,000 40,000 60% 50% 090 25% Historical written premium S1,100,000 Historical earned premium$1,000,000 Projected loss & LAE ratio 75% Profit provision 5% General expenses and taxes, licences &fees are assumed to occur throughout the policy Other acquisition and commissions & brokerage expenses are assumed to occur at the onset of the policy 5) Given the following information, calculate the indicated rate change Historical ExpensePercent Assumed Fixed General expense Other acquisition Commissions & brokerage Taxes, licenses & fees 100,000 66,000 110,000 40,000 60% 50% 090 25% Historical written premium S1,100,000 Historical earned premium$1,000,000 Projected loss & LAE ratio 75% Profit provision 5% General expenses and taxes, licences &fees are assumed to occur throughout the policy Other acquisition and commissions & brokerage expenses are assumed to occur at the onset of the policy
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