IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 06
| Q1.If: Exposure Units = 50,524 Claim Count = 565, and Scale Factor = 2,000; Then: Which of the following format is correct to find out Frequency perk Exposure Units? |
| a) 2000*(565) /50,524 |
| b) 2000*(565) *50,524 |
| c) 2000*(565) +50,524 |
| d) 2000*(565) -50,524 |
| Q2.Which are attorneys' fees, investigative fees, and the like associated with settling a particular claim? |
| a) Allocated Loss Adjustment Expenses |
| b) Unallocated Loss Adjustment Expenses |
| Q3.What losses refer to the sum of payments plus case reserves? |
| a) Unreported losses |
| b) Incurred losses |
| c) Reported losses |
| d) Ultimate losses |
| Q4. The actual (experience) and expected (exposure) components of the experience rating calculation are weighted to produce the costs the entity under consideration will pay and the weight assigned to the experience component is called__. |
| a) Frequency |
| b) Rating |
| c) Credibility |
| d) Severity |
| Q5.Under which claims, the rate of claim closure is one of the most important indicators of the condition of the claim department, and this statistic measures the ratio of claims closed in the period of claims open at the beginning of the period? |
| a) Open Claim Counts |
| b) Average Closed Claim |
| c) Change in Average Closed claim |
| d) Closed claims as a Percent of Open Claims |
| Q6.In the context of utility theory, which of the below is incorrect? |
| a) A Risk-averse decision-maker would have a utility function that increases at a progressively faster rate. |
| b) A Risk neutral decision-maker will have a linear utility function. |
| c) A Risk seeker decision-maker will have a positive 2nd derivative. |
| d) A Risk-averse decision-maker will have a negative 2nd derivative. |
| Q7.Which rating simplifies the premium calculation for large, complex entities and, in some instances, allows the entities' experience to affect the premium developed from manual rates or to determine the rates regardless of rating group? |
| a) Experience rating |
| b) Schedule rating |
| c) Composite rating |
| d) None of the above |
| Q8.This is Relevant for estimating I.B.N.R.: |
| a) Accident Date. |
| b) Accounting Date. |
| c) Recorded Date. |
| d) All of the above |
| Q9.The individual making the claim is the ____. |
| a) Agent |
| b) Claimant |
| c) Principal |
| d) Commissioner |
| Q10.Which of the following is true for the pure premium method: |
| a) It is based on premiums |
| b) Produces indicated rates |
| c) Requires existing rates |
| d) Uses on-level premium |