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Category: IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 – 10

IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 – 10

Que. 1 : Q1) Which of the following statements about retrospective individual risk rating is untrue?

   1.  a) The length of the retrospective rating period is usually more than 3 years.

   2.  b) The shorter the period, the more responsive the plan will be to changes that truly affect loss experience.

   3.  c) Retrospective rating plans may limit losses per occurance.

   4.  d) Retrospective rating plans may have maximum or minimum premium charges and need to be corrected for off-balance.

Que. 2 : Q2) Which is sweeping across the property-casualty insurance landscape, overturning traditional notions of surplus adequacy, and leaving in its wake sophisticated models?

   1.  a) Financial analysis

   2.  b) Statistical analysis

   3.  c) Traditional analysis

   4.  d) Dynamic financial analysis

Que. 3 : Q3) If: Preminum-Related Expense Factor = 0.2965, Profit and Contingencies Factor = 0, and Ratio of Non-Premium-Related Expense to Losses = 0.0642, Then: Target Loss Rotio is:

   1.  a) 0.1166

   2.  b) 0.1616

   3.  c) 0.6611

   4.  d) 0.6161

Que. 4 : Q4) Which of the following simply displays all reported claims by development period and we can conclude that for this particular line of business, essentially all claims are reported within 24 months?

   1.  a) Closed with No payment Claim Counts

   2.  b) Closed with Payment Claim Counts

   3.  c) Closed Claims as Percent of Reported Claims

   4.  d) Reported Claim Counts

Que. 5 : Q5) Credibility has the following criteria that must be met. Which of the above criteria is incorrect?

   1.  a) Credibility must not be less than zero or greater than one.

   2.  b) Credibility should decrease as the size of risk decreases all else being equal.

   3.  c) The percentage change for any loss of a given size should increase as the size of risk increases.

   4.