91 (#62) and 94 (#94)
Beth Sweeney ( (no email) )
Thu, 30 Apr 1998 10:40:14 -0500
The MAF Seminar had a problem (#1) after the McClenahan review which is
similar to the above problems. The Casualty Study Manual shows these
problems after the Finger section. The CSM answer says that a change in
the average class relativity has no impact in the loss ratio indication.
The MAF Seminar answer adjusts EP at Current rates based on the correct
Class Relativity. Therefore both the loss ratio method and pure premium
method still yield the same answer.
Does anyone have the CAS model answer for these problems?