Insurance Payments: Deductibles, Coinsurance, Benefit Limits, and Inflation

Free SOA Exam P (Probability) lesson in Univariate Random Variables. 26 min read, ~3,845 words.

Payment with deductible and limit:; the upper LEV bound is the maximum covered loss, not. Coinsurance: scales the expected payment linearly by; apply deductible first, then coinsurance, then limit, always in this order. Per loss vs. per payment: per payment divides by; per loss includes the zero payments below the...