Transcript Chapter

Chapter 27
INSURANCE
PRICING
State Laws Require Rates To Be
• Adequate
• Not excessive
• Not unfairly discriminatory
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Business Rate-Making Objectives
• Simplicity
• Stability
• Responsiveness
• Encourage loss prevention
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EXHIBIT 27.1 Commissioners 1980
Standard Ordinary Mortality Table, Male Lives
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EXHIBIT 27.1 (continued) Commissioners
1980 Standard Ordinary Mortality Table,
Male Lives
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EXHIBIT 27.2
Present Value
of $1 at 5
Percent
Compound
Interest
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EXHIBIT 27.3 Figuring the NSP for a
Five-Year Term Insurance Policy
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EXHIBIT 27.4 Terrorism Losses to Hike
Combined Ratio to Record Levels
(Combined Ratio)
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INSIGHT 27.1 Profitability of Insurance
Industry and Other Selected Industries
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EXHIBIT 27.5 Prospective Reserve—
Ordinary Life Insurance
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