Introduction a Objectives I. Introduction: Methods are applicable outside of PEc (e. g. health) . objectives: A. Essential objectives 1. Cover expected losses and expenses a. include investment income b. no inter-cohort subsidies c. no subsidies across risk classes d. must cover to last dollar paid out(several years later) e. selling at a loss is o. k, but subsidy should come from L.C. owners equity2 Introduction & Objectives A. Essential Objectives 1. Cover expected losses and expenses a. include investment income b. no inter-cohort subsidies c. no subsidies across risk classes d. must cover to last dollar paid out (several years later) e. selling at a loss is O.K., but subsidy should come from I.C. owner’s equity I. Introduction: Methods are applicable outside of P&C (e.g. health) II. Objectives: