IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 10
| Q1.Which of the following statements about retrospective individual risk rating is untrue? |
| a) The length of the retrospective rating period is usually more than 3 years. |
| b) The shorter the period, the more responsive the plan will be to changes that truly affect loss experience. |
| c) Retrospective rating plans may limit losses per occurrence. |
| d) Retrospective rating plans may have maximum or minimum premium charges and need to be corrected for off-balance. |
| Q2.Which is sweeping across the property-casualty insurance landscape, overturning traditional notions of surplus adequacy, and leaving in its wake sophisticated models? |
| a) Financial analysis |
| b) Statistical analysis |
| c) Traditional analysis |
| d) Dynamic financial analysis |
| Q3.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: |
| a) 0.1166 |
| b) 0.1616 |
| c) 0.6611 |
| d) 0.6161 |
| Q4.Which of the following simply displays all reported claims by development period and we can conclude that for this particular line of business, essentially all claims are reported within 24 months? |
| a) Closed with No payment Claim Counts |
| b) Closed with Payment Claim Counts |
| c) Closed Claims as Percent of Reported Claims |
| d) Reported Claim Counts |
| Q5.Credibility has the following criteria that must be met. Which of the above criteria is incorrect? |
| a) Credibility must not be less than zero or greater than one. |
| b) Credibility should decrease as the size of risk decreases all else being equal. |
| c) The percentage change for any loss of a given size should increase as the size of risk increases. |
| Q6.A.L.A.E. does not include |
| a) Attorneyamp;amp;rsquo;s Fees. |
| b) Investigative Fees. |
| c) Expenses associated with settling a particular claim. |
| d) Expenses associated with adjusting claims that are not allocated to the settlement of a particular claim. |
| Q7.The reserve for ____ is commonly called an IBNR Reserve. |
| a) Known claims |
| b) Unknown claims |
| Q8.If: Exposure Units = 32,458; Claim Count = 8,14; and Scale Factor = 1,000; Then : Frequency Per 'K' Exposure Units is : |
| a) 0.39872408 |
| b) 80.52 |
| c) 25.08 |
| d) 39,874.69287 |
| Q 9. Which of the following is correct about the Earned Exposures? |
| a) Earned Exposures are the Units of Exposures on Policies written during the period in question. |
| b) Earned Exposures are the Units of Exposures actually exposed to Loss during the period in question. |
| c) Earned Exposures are the Units of Exposures exposed to Loss at a given point in time. |
| Q10.Which losses refer to the sum of reported and unreported losses? |
| a) Unreported losses |
| b) Reported losses |
| c) Incurred losses |
| d) Ultimate losses |