IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 08
| Q1.Which of the following formulas is correct? |
| a) T = 1-V-Q / 1+G |
| b) T = 1+V+Q / 1+G |
| c) T = 1-V+Q / 1-G |
| d) T = 1+V-Q / 1-G |
| Q2.Which of the following equations is incorrect? |
| a) Assets = Liabilities + Owner's Equity |
| b) Revenue = Income + Expenses |
| c) Contributed Capital = Owner’s Equity + Retained earnings |
| d) Income = Change in Assets - Change in Liabilities - Change in Contributed Capital + Dividends to owner |
| Q3.Severity is: |
| a) Total amount of loss in an accounting year. |
| b) Highest possible amount of loss. |
| c) Average loss per unit. |
| d) Largest amount of loss occurred in an accounting year. |
| Q4.Which of the following equations is incorrect for a non-life insurance company: |
| a) Incurred losses = paid losses + change in outst anding claims |
| b) Owner’s equity = contributed capital + retained earnings |
| c) Income = Change in earnings + dividends |
| d) Retained earnings = Assets and mdash; Liabilities and mdash; Contributed capital |
| Q 5. Which is the risk that exists in nature and is the same for all persons or entities facing the same situation? |
| a) Objective risk |
| b) Pure risk |
| c) Speculative risk |
| d) Subjective risk |
| Q6.What are a blend of academic rigor and business practice and it justify conclusions with statistical data, never content to rely on intuition alone? |
| a) Ratemaking |
| b) Financial analysis |
| c) Actuarial science |
| d) Utility theory |
| Q7.Which triangle displays open claims that are claims reported less all claims closed? |
| a) Change in Average Open claims |
| b) Average Open Claim Amount |
| c) Open Claim Counts |
| d) Average Closed Claim |
| Q8.Which expenses tend not to be recorded in the same level of detail as allocated loss adjustment expense and usually some type of internal allocation procedure is used to distribute calendar year ULAE expenses to the line of business? |
| a) Unallocated Loss Adjustment Expenses |
| b) Allocated Loss Adjustment Expense |
| Q9.Which of the following is not a risk financing technique? |
| a) Risk retention |
| b) Risk Avoidance |
| c) Contractual transfer to a non-insurer |
| d) Transfer to an insurer |
| Q10.The length of the retrospective rating period is usually ___. |
| a) 1 or 3 years |
| b) 3 or 5 years |
| c) 5 or 8 years |
| d) 8 or 10 years |