J
Jiang
Member
Hi, thank you in advance for your help.
I am a bit confused by the solution for this question. If assuming the claims occurring on average mid-month. Shouldn't the fourth column in the calculation table be (Month + 0.5) * earned exposure, instead of (Month - 0.5) * earned exposure?
For policies written in September 2006, it is given in the question that the policies incept on the first day of the month, so the claims should be expected at mid-month. This would mean month 9.5 is the average claim date for September claim, and not 8.5 as per the examiner's report.
I am a bit confused by the solution for this question. If assuming the claims occurring on average mid-month. Shouldn't the fourth column in the calculation table be (Month + 0.5) * earned exposure, instead of (Month - 0.5) * earned exposure?
For policies written in September 2006, it is given in the question that the policies incept on the first day of the month, so the claims should be expected at mid-month. This would mean month 9.5 is the average claim date for September claim, and not 8.5 as per the examiner's report.