Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 3. an insurance company issues annual policies, al

3. An insurance company issues annual policies, all of which are effective October 1st of...

90.2K

Verified Solution

Question

Accounting

image

3. An insurance company issues annual policies, all of which are effective October 1st of each year. You are given the information below: Claim Number 1 2 Date of Reserve as of Paid During Reserve as of Accident 31/12/2018 2019 2020 31/12/2019 31/12/2020 15/4/2017 $50,000 $0 SO $50,000 $50,000 1/8/2019 0 50,000 10,000 100,000 100,000 2/12/2019 0 0 5,000 200,000 150,000 5/1/2018 150,000 25,000 0 125,000 125,000 15/11/2018 600,000 500,000 1,000,000 1,000,000 0 1/2/2020 0 0 0 0 100,000 3 4 5 6 Unearned premium as of January 1st, 2019: $600,000 - Written premium on issued policies in 2019: $1,500,000 Calculate: (a) 2019 calendar year incurred-to-earned claim ratio evaluated as of December 31st, 2020. [6 marks] 7 2 (b) 2019 accident year claims evaluated as of December 31st, 2020. [3 marks] (c) 2019 policy year earned-to-incurred claim ratio evaluated as of December 31, 2020. Assume policy year 2019 runs from 1/10/2019 through 30/9/2020. [3 marks]

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Approximately 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these...

Chemistry
1.2K views

2) You have 25 ml of an ATP solution. You take 30 µl and dilute to...

Finance
1.2K views

Project scenario: You are the principal of a consulting firm, IDSCDR2 Inc. Your consulting firm provides two...

Basic Math
1.2K views

Solve by using the strategies for solving application problems.It costs a manufacturer $9.99 to produce...

Basic Math
1.2K views

Find the vertices and asymptotes of x/49-y/9=1List the coordinates of the vertices:Write the equation of...

Statistics
1.2K views

A commonly cited work week hours for an employee is 36 hours A company samples...

Calculus
1.2K views

s x 3e2ln x 3 22 1 4

Accounting
1.2K views

Which of the following statements concerning income statement profitability measures is most correct? Net income...

Accounting
1.2K views

Problem 3 (12 points) A piece of equipment has an initial cost of $450,000. The...

Accounting
1.2K views

Off-the-shelf accounting software is not adequate to meet the needs of small businesses. True or...

Finance
1.2K views

please make sure it's the correct answer! Lindsey invested his savings in...

Accounting
1.2K views

ASAP Kindly give me the correct answer and do not copy from other Chegg answer...