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Category: IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 – 15

IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 – 15

Que. 1 : Q1) Which policies cover the losses(or losses and ALAE, depending on policy definitions) paid during the policy period, regardless of the associated occurrence or claim report dates if these dates are after the appropriate retroactive dates?

   1.  a) Claims-made policies

   2.  b) Claims-paid policies

   3.  

   4.  

Que. 2 : Q2) The correlation coefficient between two variables x and y is r. which of the following statements is true?

   1.  a) 0 < r < 1

   2.  b) 0 < = r < = 1

   3.  c) -1 < r < 1

  4.  d) -1 < = r < = 1

Que. 3 : Q3) Which of the following statements is correct?

   1.  a) A risk neutral decision maker would have a utility function that is exponential.

   2.  b) A risk averse decision maker would have a utility function that decreased at a progressively lower rates or had a positive second derivative.

   3.  c) A decision maker who favoured risk would have a utility function that increased at a progressively faster rate or had a positive second derivative.

   4.  d) All the above statements are correct.

Que. 4 : Q4) 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. 5 : Q5) Accounting Date is ….

   1.  a) The Date on Which the Loss Occurred

   2.  b) The Date on Which the Loss is First Reported

   3.  c) The Date on Which the Loss is First Recorded in the insurer’s statistical information.

   4.  d) The Date used to define the Group of Claims to be included in the Liability Estimate.