1. Ratemakers at ABC Insurance Company calculated the pure premium to be $580 for a risk they were considering insuring. What is the gross rate for this risk, assuming a 20 percent expense ratio? Show all work
2. XYZ Insurance Company expects $400,000 in claims and $100,000 in loss adjustment expenses for each 1,000 properties that it insures in a certain category of business insurance. What pure premium should XYZ charge for each property insured? Show all work.