IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 02

Que. 1 : Q1) Which triangle tracks the average amount reserved on open claims?

   1.  a) Change in Average Open claims

   2.  b) Average Open Claim Amount

   3.  c) Open Claim Counts

   4.  d) Average Closed Claim

Que. 2 : Q2) If : Exposure Units = 97,531
Claim Count = 975, and
Scale Factor = 1,000;
Then : find Frequency per ‘k’ Exposure Units?

    1.  a) 6.24

   2.  b) 7.65

   3.  c) 9.99

   4.  d) 13.54

Que. 3 : Q3) Which data are organised by year of report to the company, as opposed to year of loss for accident year and this array freezes the inventory of loss to study only those cases actually reported to a company during a calendar year?

   1.  a) Accident year approach

   2.  b) Report year approach

   3.  c) Standard year approach

   4.  d) None of these

Que. 4 : Q4) Doing this manually is generally far too time-consuming to be practical, but where sufficient detail is available in the computer files and if rating software is available, the resulting on-level premiums will be quite accurate, This method is referred to as the _____________.

   1.  a) Parallelogram method

   2.  b) Extension of exposure technique

   3.  c) Loss ratio method

   4.  d) Pure premium method

Que. 5 : Q5) Which triangle shows the ________ in each successive 12-month period and we see immediately that payments during the second annual development period on an accident year are roughly equal to the amount paid in the first annual development period.

   1.  a) Cumulative Paid Losses

   2.  b) Incremental Incurred Losses

   3.  c) Incremental Paid Losses

   4.  d) Paid Loss as a Percent of Incurred Loss