当limit处理吧。。

normally, if you have both types of deductible, ordinary d. < franchise d.

since fran. d. is a threshold, before fran. d. liability is on policy holder, after fran.d. liability shifts to insurer. so, after franchise d. policy holder always pays nothing.

then, if loss < fran.d, o. d. applies:
1) loss < o.d., policy holder's full liability, insurer pays nothing
2) o.d. < loss < fran.d., policy holder pays o.d., insurer pays (loss - o.d.)
combine with the above first assumption:
3) loss > fran. d. , policy holder pays nothing, insurer's full liability.

equal sign could be applied to anywhere. hope it helps

和ordinary一样，如果distribution是groud-up的话。。最后求E(x)的时候用e(d)+d

谢谢~~~likelihood的式子是S(x)? 不需要conditional on s(d)?

appreciated~~
my question is: under ordinary deductible, likelihood =f(x)/S(x)
how about given Franchise deductible?