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Chapter 20 Practice Questions

Discussion in 'CS2' started by Aisha, May 30, 2019.

  1. Aisha

    Aisha Very Active Member

    Hello

    I have a doubt in chapter 20, practice questions, Q. 20.2 , shouldn't the insurer's premium income be calculated as 1.2E( SI) instead of 1.2 E(S) just like how reinsurance premium is 1.3E(SR)?
    What logic am I missing?
     
    Aisha, May 30, 2019
    #1
  2. vidhya36

    vidhya36 Very Active Member

    They are considering the scenario before effecting individual xol which is why it's ES instead of ES_I.

     
    vidhya36, Jun 4, 2019
    #2

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