Insurance Payments: Deductibles, Coinsurance, Benefit Limits, and Inflation
Free SOA Exam P (Probability) lesson in Univariate Random Variables. 24 min read, ~3,565 words.
Payment with deductible d and limit u:. Coinsurance c: multiply by; order is deductible first, coinsurance, then cap. Per loss vs. per payment: per payment divides by. Exponential memoryless: expected payment per payment always equals regardless of deductible. Limited expected value:, the fundamental building block.
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2e
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