In this question I can't see where £350 inital expenses have come from. I calculated £150 initial expense (as stated in question) plus 100% of initial commission. Where initial commission is 10% of 1st premium (£1000). Can anyone enlighten me?
Also... in part ii) a) why do they adjust the reserves 'as the question asks for values in respect of the beginning of the year' to me it looks like the question says 'calculate the expected provisions that must be set up at the end of each year, per policy in force at the start of each year'
