CAS Exam 5 Practice Questions - CAS Exam 5 Basic Ratemaking And Estimating Claim Liabilities Exam

Under the pure premium method of ratemaking, the indicated rate per exposure unit is calculated as:

Pure premium divided by (1 minus variable expense ratio minus profit provision) Pure premium multiplied by (1 plus fixed expense ratio plus profit provision) Experience loss ratio divided by target loss ratio Pure premium plus fixed expenses, divided by target combined ratio

Correct Answer:

Pure premium divided by (1 minus variable expense ratio minus profit provision)

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