IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 01
| Q1.If : Exposure Units = 50,524 Claim Count = 565, and Scale Factor = 2,000; Then : find Frequency per k Exposure Units? |
| a) 15.65 |
| b) 18.65 |
| c) 22.36 |
| d) 26.35 |
| Q2.The term case-incurred is used to distinguish the statistic from ___, which includes losses that have not yet been reported to the insurance company as of the case-incurred evaluation date. |
| a) Accident year case-incurred losses |
| b) Case-incurred losses |
| c) Ultimate Incurred losses |
| d) Paid losses |
| Q3.Which method that can be used to analyze increased limits experience is to look at loss development patterns by layer and this process involves segregating case-incurred loss data by policy limit and loss layer and then tracking the observed loss development factors in each layer? |
| a) Trending Individual Losses |
| b) Loss Development by Layer |
| c) Fitted Size-Loss Distribution |
| d) None of these |
| Q4.This is not an actuarial criterion for reflecting rating variables: |
| a) Credibility |
| b) Reliability |
| c) Homogeneity |
| d) None of the above |
| Q5.What implies an intuitive relationship to insurance costs and the rating variable is correlated with costs if the mean costs for the various groups are significantly different? |
| a) Controllability |
| b) Considerations |
| c) Causality |
| d) None of these |
| Q6.Given that : Pure premium = Rs. 50.00 Rate per unit exposure = Rs.75 Variable expense factor = 10% Profit and contingency factor = 5% The Fixed expenses per exposure will be : |
| a) 10.25 |
| b) 11.65 |
| c) 13.75 |
| d) 16.55 |
| Q7.Which of the following is not a broad goal of the manual rate-making process? |
| a) To determine rates that will when applied to the exposure underlying the risk being written. |
| b) Provide sufficient funds to pay expected losses and expenses. |
| c) Maintain an adequate margin for adverse deviation |
| d) None of the above. |
| Q8.U.L.A.E. means: |
| a) University Level Actuarial Examination |
| b) University Level Actuarial Education. |
| c) Uninsured Loss Adjustment Expenditure. |
| d) Unallocated Loss Adjustment Expenses. |
| Q9.Which of the following statements is incorrect? |
| a) A risk-neutral decision-maker would have a utility function that is linear. |
| b) A risk-averse decision-maker would have a utility function that increased at progressively higher rates or had a positive second derivative. |
| Q10.What are a measures of the accuracy of the classification system and this concept is important to the public debate concerning restrictions on the use of classification variables? |
| a) Exposure |
| b) Efficiency |
| c) Controllability |
| d) Considerations |
