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A Company with 1,000 Employees Has the Following Experience This $5,600 \$ 5,600

Question 15

Multiple Choice

A company with 1,000 employees has the following experience this year

25 hospitalizations at $5,600 \$ 5,600 each.
24 births at $10,000 \$ 10,000 each.
4.1 physician visits per employee at $60 \$ 60 per visit.
2.4 prescriptions filled per employee at $25 \$ 25 per prescription.

The actuarially fair premium for this company


A) is less than $500 per employee.
B) is greater than $1000 per employee.
C) is approximately $686 per employee.
D) is less than the loading factor per employee.
E) is the same as the loading factor per employee.

Correct Answer:

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