Short Term FAM

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Last updated 12:04 AM on 7/23/26
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17 Terms

1
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E[X ^ u]

Policy Limit Insurer Expected Lost E[Y^L]

2
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E[X ^ u] / E[X ^ b]

ILF

3
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E[(X-d)+] = E[X] - E[X ^ d]

Ordinary Deductible Insurer Expected Loss E[Y^L]

4
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E[X ^ d] / E[X]

LER

5
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E[(X-d)+] + d*S(d)

Franchise Deductible E[Y^L]

6
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E[Y^L]/S(d)

E[Y^P]

7
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u/alpha + d

Max loss covered formula (m)

8
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alpha(1+r) [ E[X ^ m/(1+r)] - E[X ^ d/(1+r)] ]

Ultimate Formula E[Y^L]

9
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(n+r-1 choose n) (beta/(1+beta)^n * (1/(1+beta))^r

Negative Binomial PDF

10
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a + b/n

Pn/Pn-1

11
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Poisson

a = 0, b= +

12
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Negative Binomial

a = + , b= +

13
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Binomial

a= -, b= +

14
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Binomial

mu > sigma²

15
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Negative Binomial

mu < sigma²

16
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(1/(1-Po) * Pn

Zero Truncated P^Tn

17
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(1-P^m)/(1-Po) * Pn

Zero Modified P^Mn