Evaluate the effects of the following coverage modifications: deductibles, policy limits, maximum covered loss, coinsurance, and stop loss reinsurance.
Free SOA Exam ASTAM (Advanced Short-Term Actuarial Mathematics) lesson in Coverage Modifications. 31 min read, ~4,666 words.
Per-loss with maximum payment; per-payment. Maximum covered loss lives on the loss scale; policy limit lives on the payment scale. Don't conflate. Inflation by: deflate and inside the LEVs and multiply outside by. Franchise deductible pays the full once, adding over the ordinary case. Stop loss on aggregate:; a layer...
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- Example 1
- Example 2
- Example 3
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Learning objectives
- 3a
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