IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 12
| Q1.The claim is often used also to refer to ____. |
| a) Profit |
| b) Gain |
| c) Loss |
| d) Reducing |
| Q2.Under loss ratio method of the ratemaking process the following information is available: Target Loss ratio= 0.65 Total premium related expense factor = 0.25 Ratio of non-premium related expenses to losses = 0.075 Calculate the Profit and contingency factor and indicate the correct answer from below : |
| a) 0.05 |
| b) 0.10 |
| c) 0.25 |
| d) 0.35 |
| Q3.What is a demand for payment by an insured or by an allegedly injured third party under the terms and conditions of an insurance contract? |
| a) Frequency |
| b) Severity |
| c) Claim |
| d) Exposure |
| Q4.Which losses can occur either because income is reduced or because expenses are increased and usually are the result of property damage? |
| a) Net income loss |
| b) Property loss |
| c) Personnel loss |
| d) Legal liability loss |
| Q5.What refers to the variation in outcomes that could occur over a specified period of time in a given situation? |
| a) Ratemaking |
| b) Risk |
| c) Controlling |
| d) Credibility |
| Q6.Which method adjusts calendar year earned premiums to current rate levels based upon simple geometric relationships and underlying assumptions that exposure is uniformly distributed over time? |
| a) Extension of exposure technique |
| b) Parallelogram method |
| c) Loss ratio method |
| d) Pure premium method |
| Q7.Risk financing techniques are classified into how many categories? |
| a) One |
| b) Two |
| c) Three |
| d) Four |
| Q8.Which pattern is related to the length of time between loss occurrence and report? |
| a) Loss settlement patterns |
| b) Loss emergence patterns |
| Q9.Incurred Losses = |
| a) Reported Losses + Un-Reported Losses |
| b) Estimate of Incurred Losses |
| c) Reported Losses — Un-Repor1ed Losses |
| Q10.If incurred losses in a year are Rs. 10 lakhs Paid losses in the year are Rs. 8 lakhs Year ending loss reserves are Rs. 4 lakhs The Beginning loss reserves are |
| a) 2,00,000 |
| b) 5,00,000 |
| c) 8,00,000 |
| d) 10,00,000 |