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The chief actuary has assigned you the project of developing rates for liability coverage for their new classic and antique car liability coverage program. The chief actuary provides you with this information obtained from the company they just purchased that had been providing this type of classic car coverage in the past. Your job is to calculate:
1. The rate per exposure unit using the pure premium method.
2. The rate change for the overall book of business using the loss ratio ratemaking method.
3. The actuary also wants you to consider a judgment rating method for insuring the physical damage for the antique and classic autos. What variables or other considerations would go into this judgment rate.
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