2012.Fall 18
I'm not understanding the format of the data given for this question. How would you restructure the data to reflect a modern day exam?
I'm not understanding the format of the data given for this question. How would you restructure the data to reflect a modern day exam?
Comments
This question is reasonably likely to come up today in the same format as it is quite close to the example shown in the source text. Candidates have to note the loss limit they're working with ($500,000) is greater than the split shown in the table ($200,000) so you have enough information to be able to compute the per-occurrence excess dollars and then the loss dollars used to price the aggregate limit.
You should follow the approach laid out here:
A key point is you need to compute the entry ratio for each risk, and also add in rows for the entry ratios the exam question lists.