IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 04
| Q1.Given that : Rate per unit exposure = Rs.112.90 Fixed expenses per exposure = Rs. 12.50 Variable expense factor = 17.5% Profit and contingency factor = 5.0% The Pure premium will be : |
| a) Rs.25 |
| b) Rs.50 |
| c) Rs.75 |
| d) Rs.100 |
| Q2.Which method estimates ultimate loss by adding together actual reported loss with expected future incurred development? |
| a) Triangular methods |
| b) Reserve Development methods |
| c) Bornhuetter- Ferguson(BF) Method |
| d) None of these |
| Q3.Examine the following two statements and state if they are true or false. 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 decreased at progressively lower rates. |
| a) True |
| b) False |
| Q4.Which method is most commonly used to estimate ultimate loss levels consist of tracking the history of a group of claims with similar definitional groupings and the data for this purpose are arranged in a triangular loss format? |
| a) Triangular methods |
| b) Reserve Development methods |
| c) Bornhuetter- Ferguson(BF) Method |
| d) None of these |
| Q5.Which theory contemplates the involvement of more than one player, each with a set of strategies? |
| a) Game theory |
| b) Utility theory |
| Q6.Which of the following method, if any, is not applicable for Review of Increased Limit Experience - |
| a) Trending Individual Loss |
| b) Fitted size of the loss distribution |
| c) Loss development by layers |
| d) Past experience analysis |
| Q7.What is the amount of unpaid claim liability shown on external or internal financial statements? |
| a) Indicated loss reserve |
| b) Carried loss reserve |
| c) Required loss reserve |
| d) Loss reserve margin |
| Q8. Dynamic financial analysis can be explained as: |
| a) It is the ongoing valuation of business keeping all values constant |
| b) It is a model with fixed parameters |
| c) Model type changes as the values remain fixed |
| d) It is a perspective and not a statistical tool |
| Q9.What does the ARMA model stand for? |
| a) Automatic. Revenue Management Accounting |
| b) Average Rule of Moving Autoregression |
| c) Autoregressive Moving Average |
| d) Accounting Resources Management Analysis |
| Q10.Speculative risk can be explained as : |
| a) There is a chance of loss and a chance of gain |
| b) There is a chance of loss but no chance of gain |
| c) There is no chance of loss but a chance of gain |
| d) None of the above |