Mathematics, 01.01.2022 04:00 kyleescott8857
An automotive insurance company has 30,000 policyholders, and the accident rate is 0. 6. If the company needs to make a profit of $1,740,000 this year and the payout for each claim (after deductibles) is $8,200, the minimum premium it must charge is $. The company’s financial advisers have predicted that in the upcoming year, the accident rate will increase by 5% of the base rate and the number of policyholders will increase by 12%. If the company’s profit needs and the payout for each claim remain the same, the minimum premium should increase by $.
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An automotive insurance company has 30,000 policyholders, and the accident rate is 0. 6. If the comp...
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