IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 11
| Q1.Which of the following is the result of the actuarial analysis of a reserve inventory as of a given accounting date conducted as of a certain valuation date and this is the analyst's opinion of the amount of the required loss reserve? |
| a) Indicated loss reserve |
| b) Carried loss reserve |
| c) Required loss reserve |
| d) Loss reserve margin |
| Q2.The term ___ is sometimes used to refer to the true unreported occurrences/claims reserve and the case reserve development. |
| a) ALAE |
| b) ULAE |
| c) IBNR |
| d) CPAM |
| Q3.What risk retention refers to exposures to possible losses that are retained because they have not been identified or have been forgotten? |
| a) Active risk retention |
| b) Passive risk retention |
| Q4.The date the insurer receives notice of the claim is known as____. |
| a) Accident date |
| b) Report date |
| c) Claim date |
| d) Recovery date |
| Q5.Risk theory is developed to deal with: |
| a) Speculative risk such as large scale gambling |
| b) Quantification of objective risk using mathematical models |
| c) Stochastic processes as applied to sciences and finances |
| d) All of the above |
| Q6.In addition to subrogation situations, the payment of first-party benefits may be accompanied by the insurer's taking of title to the damaged property. This property can often be disposed of for a partial recovery of the amount paid to the policyholder for the loss, and is called ___. |
| a) Salvage |
| b) Subrogation |
| c) Loss Development |
| d) None of these |
| Q7.Based on the following information:- Ending claim liability on 31.12.2009 - Rs.2 lakhs Incurred claim liability in 2009 - Rs.10 lakhs opening claim liability as on 1.1.2009 - Rs.1 lakhs The Paid losses in the year 2009 was |
| a) 7,00,000 |
| b) 8,00,000 |
| c) 9,00,000 |
| d) 10,00,000 |
| Q8.Risk-Averse Decision-Maker would have a Utility Function that............ |
| a) ...... is Linear |
| b) ....... increased at Progressively Lower Rates, and had a Negative Second Derivatives. |
| c) ........ increased at Progressively Faster Rates, and had a Positive Second Derivative. |
| Q 9. Which of the following statements is untrue? |
| a) Objective risk is the risk that exists in nature and is the same for all persons or entities facing the same situation. |
| b) Subjective risk is each person's or entity's estimate of objective risk. |
| c) Pure risk exists where there is a chance of either gain or loss of the same amount. |
| Q10.The characteristics of an ideally insurable exposure are as follows:- Which of the above is not true? |
| a) The exposure transferred should be the subject of pure risk. |
| b) There should be a large number of independent entities with similar exposures. |
| c) The insured loss should be definite or determinate in time, place, cause, and amount. |
| d) The expected loss over some reasonable period of time need not be estimable. |