Example: Looking again at the 100 insured car owners, assume that the insurer has not only included a 500 deductible but has also placed a maximum on a claim payment of 12,500. What would the expected claim payments and the insurer’s risk be?
Example: Looking again at the 100 insured car owners, assume that the insurer has not onlyincluded a 500 deductible but has also placed a maximum on a claim payment of 12,500. Whatwould the expected claim payments and the insurer’s risk be?