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Question: 1. Class A is the base class. Using both the pure premium and loss ratio methods, determine the new differential for Class B and Class C given the following information:
Class
Existing Differential
Current Base Rate
Experience Period Loss Ratio at Current Rates
Pure Premium
Earned Exposures
A
1.00
100
0.71
126
400
B
0.91
91
0.66
107
260
C
1.18
118
0.59
124
340
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