It is 2018 and Penelope is estimating a loss reserve. The reserve is based on a...

It is 2018 and Penelope is estimating a loss reserve. The reserve is based on a calculation that includes duration of disability, life expectancy and similar factors. Such a method of estimating loss reserves is referred to as the: 1. judgement method. 2. average value method. 3. loss ratio method. 4. tabular value method.

Expert Solution

The answer is Option4- Tabular view method.

In case of tabular view method, loss reserve is based on life expectancy, duration of disability, and similar factors.

jeff jeffy answered 2 years ago

Briefly explain the process of estimating loss reserves. Identify three methods and identify the basis for...

Briefly explain the process of estimating loss reserves. Identify three methods and identify the basis for each method.

Is a weight loss program based on exercise just as effective as a program based on...

Is a weight loss program based on exercise just as effective as a program based on diet? The 58 overweight people put on a strict one year exercise program lost an average of 22 pounds with a standard deviation of 5 pounds. The 55 overweight people put on a strict one year diet lost an average of 25 pounds with a standard deviation of 10 pounds. What can be concluded at the αα = 0.05 level of significance? For this...

(1) You are estimating the cost of optical sensors based on the radius of the sensors....

(1) You are estimating the cost of optical sensors based on the radius of the sensors. You decide to calculate the coefficient of determination (R2) as part of determining the goodness of fit of an equation. Using the preliminary calculations below, calculate the R2 and determine its meaning. [Image Description: Summation of (Yi-Ybar)2 = 150000, Summation of (Yhat-Ybar)2 = 125000, Summation of (Y-Yhat)2 = 25000] 16.67% of the variation in the radius is being explained by the cost. 83.33% of...

Q1. Being a student of Insurance Accounting, you must be aware of the term Loss reserve...

Q1. Being a student of Insurance Accounting, you must be aware of the term Loss reserve that is an estimate of an insurer’s liability from future claims. Loss reserves are typically comprised of liquid assets, and they allow the insurer to cover claims made against policies that it underwrites. While estimating the loss reserves what factors does insurance company takes into account. Discuss also the Components of Loss Reserves. Q2. The primary role of a Loss Reserve Specialist is to...

The company uses funded reserve ($5,000) to cover the fire loss. Suppose the annual rate of...

The company uses funded reserve ($5,000) to cover the fire loss. Suppose the annual rate of return of the funded reserve is 10%, the NPV of this project is $______________. Initial investment:$100,000 Life of project:5 years Expected annual loss from fire:$4,000 Annual cash revenue $30,000 Tax rate 30% Discount factor 4

DISCUSSION - When estimating a population characteristic based on a sample statistic, why it is important...

DISCUSSION - When estimating a population characteristic based on a sample statistic, why it is important to use standard error as part of your estimate?

1. Complete the table below by estimating the number of resignations at each job level based...

1. Complete the table below by estimating the number of resignations at each job level based on the percentage turnover, and calculating the positions that need to be filled for the next quarter based on the estimate of the required number of employees. Job Level 5 4 3 2 1 Previous Employees 20 25 50 60 500 Est. Resignations @ 10% Turnover Est. Employees Required 20 25 50 61 505 Postions to Fill 2. State the promotion policy you will...

Trey, Inc. reports a taxable loss of $140,000 for 2018. Itstaxable incomes for the years...

Trey, Inc. reports a taxable loss of $140,000 for 2018. Its taxable incomes for the years 2015 through 2017 respectively were $25,000, $35,000, and $40,000. Trey has no temporary or permanent differences. Trey elects the carryback provision. Taxable income in future years is not more likely than not, and the tax rate is 30% for all periods affected. What should Trey report as Net Loss on its 2018 income statement?Select one:a. $98,000b. $120,500c. $140,000d. $117,500e. $110,000

In March 2018, the Federal Reserve Bank officials met and decided to increase the interest slightly...

In March 2018, the Federal Reserve Bank officials met and decided to increase the interest slightly (a quarter of one percent) and have hinted that there will be two or more interest hikes in 2018. The reason for these hikes is to prevent the economy from overheating as unemployment continues to drop. Using AD-AS model, show what could happen to the economy if the Fed hiked interest rate when the economy is close to full employment.

Estimating Demand for Super Detergents: Here is the story: Branded Products, LLC., based in Sharjah, UAE,...

Estimating Demand for Super Detergents: Here is the story: Branded Products, LLC., based in Sharjah, UAE, is a leading producer and marketer of household laundry detergent and bleach products. About a year ago, Branded Products rolled out its new Super Detergent in 15 regional markets following its success in test markets. Branded Products, LLC. hired a marketing consulting firm to perform a test marketing of product called Super Detergent. The marketing consultants collected data on average household income (M), the...

Question