IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 -02
| Q1.In an ___, the value of the property is lessened as a result of direct damage to some other property. |
| a) Personal property loss |
| b) Direct property loss |
| c) Indirect property loss |
| d) Sudden property loss |
| Q2.The term ULAE stands for____ |
| a) University Level Actuarial Education |
| b) Unutilised Legal Administrative Expenses |
| c) Uninsured loss adjustment expenditure |
| d) Unallocated Loss Adjustment Expenses |
| Q3.The term __ sometimes is used to refer to the state of being subject to lose and it is also used to refer to the rating units on which insurance premium is based or to the units by which probability and size of the loss are measured. |
| a) Occurrence |
| b) Exposure |
| c) Claims |
| d) Severity |
| Q4.The weight assigned to the experience component is called credibility and is commonly denoted as __. |
| a) W |
| b) A |
| c) G |
| d) Z |
| Q5.As can be seen from the process of selection of development factors the analyst should be able to recognize: |
| a) normal levels of random fluctuation in developments |
| b) aberrations in development patterns and be able to isolate their causes, and determine if they are ongoing or one time changes in development |
| c) trends in loss development patterns |
| d) All of the above |
| Q6.Which systems use the actual experience of the period to determine the final costs for that period? |
| a) Prospective systems |
| b) Retrospective systems |
| Q7.The exposure units actually exposed to loss during the period are known as? |
| a) Written exposure |
| b) In-force exposures |
| c) Earned exposures |
| d) None of the above |
Q8.
Reported Losses = |
| a) Payments + Case Reserves. |
| b) Case Reserve Development + Unreported Occurrences or Claims Reserve. |
| c) Payments — Case Reserves. |
| d) Case Reserve Development - Unreported Occurrences or Claims Reserve. |
| Q9.The following are the losses of concern to risk managers: Which of the above, if any, is wrong? |
| a) Personal Loss |
| b) Property loss |
| c) Loss of reputation |
| d) Legal liability |
| Q10. The average loss per claim is called___. |
| a) Exposure |
| b) Claim |
| c) Frequency |
| d) Severity |