a) Calculate the earned car-years for calendar year 2011. b) Calculate the earned car-years for policy year 2010 evaluated as of December 31, 2010 and as of December 31, 2011. c) Assume Policy Group B cancels on January 1, 2011. Calculate the 2010 policy year written car- years evaluated as of December 31, 2010 and as of December 31, 2011 for Policy Group B. d) Assume Policy Group B cancels on July 1, 2011. Calculate the 2010 and 2011 calendar year written car-years for Policy Group B

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Given the following information for an insurance company that writes 24-month term policies:
Number of
Vehicles
50
100
Policy Group
A
B
Effective Date
January 1, 2010
Expiration Date
December 31, 2011
July 1, 2010
June 30, 2012
All policies within each group have the same effective date.
(a) Calculate the earned car-years for calendar year 2011.
(b)
Calculate the earned car-years for policy year 2010 evaluated as of December 31, 2010 and as of
December 31, 2011.
(c)
Assume Policy Group B cancels on January 1, 2011. Calculate the 2010 policy year written car-
years evaluated as of December 31, 2010 and as of December 31, 2011 for Policy Group B.
(d) Assume Policy Group B cancels on July 1, 2011. Calculate the 2010 and 2011 calendar year
written car-years for Policy Group B.
Transcribed Image Text:Given the following information for an insurance company that writes 24-month term policies: Number of Vehicles 50 100 Policy Group A B Effective Date January 1, 2010 Expiration Date December 31, 2011 July 1, 2010 June 30, 2012 All policies within each group have the same effective date. (a) Calculate the earned car-years for calendar year 2011. (b) Calculate the earned car-years for policy year 2010 evaluated as of December 31, 2010 and as of December 31, 2011. (c) Assume Policy Group B cancels on January 1, 2011. Calculate the 2010 policy year written car- years evaluated as of December 31, 2010 and as of December 31, 2011 for Policy Group B. (d) Assume Policy Group B cancels on July 1, 2011. Calculate the 2010 and 2011 calendar year written car-years for Policy Group B.
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