IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 13
| Q1.If : Exposure Units = 50,524 Claim Count = 565, and Scale Factor = 2,000; Then : find Frequency per k Exposure Units? |
| a) 15.65 |
| b) 18.65 |
| c) 22.36 |
| d) 26.35 |
| Q2.What are measures of the accuracy of the classification system and this concept is important to the public debate concerning restrictions on the use of classification variables? |
| a) Exposure |
| b) Efficiency |
| c) Controllability |
| d) Considerations |
| Q3.Which data are organized by year of the report to the company, as opposed to the 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? |
| a) Accident year approach |
| b) Report year approach |
| c) Standard year approach |
| d) None of these |
| Q4.Which of the following statements is correct? |
| a) A risk-neutral decision-maker would have a utility function that is exponential. |
| b) A risk-averse decision-maker would have a utility function that decreased at a progressively lower rate or had a positive second derivative. |
| c) A decision-maker who favored risk would have a utility function that increased at a progressively faster rate or had a positive second derivative. |
| d) All the above statements are correct. |
| Q5.Which of the following criteria must be met by credibility? |
| a) Credibility must not be less than zero or greater than one |
| b) Credibility should increase as the size of risk increases, all else being equal |
| c) The percentage change of any loss of a given size should decrease as the size of risk increases |
| d) All of the above |
| Q6.How many basic types of prospective individual risk rating systems are there? |
| a) One |
| b) Two |
| c) Three |
| d) Four |
| Q7.Effective with the 1999 Annual Statement, the NAIC changed the titles of these expenses to match the revised definitions, __ became Adjusting and other expenses. |
| a) ALAE(Allocated Loss Adjustment Expenses) |
| b) ULAE(Unallocated Loss Adjustment Expenses) |
| Q8.Objective risk can be explained as: |
| a) There is a chance of loss as well as gain |
| b) It is the exposure to possible loss |
| c) It is the risk that is the same for all persons and entities facing the same situation |
| d) It is the risk that is the same for all persons and entities facing a different situation |
| Q9.Under which claims total closed claims can be related to claims reported and this is a monitor on closing activities? |
| 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 |
| Q10.What is used to describe the changes that take place in the value of a claim over time and once the claim is settled and no further payments are expected, the claim is closed? |
| a) Subrogation |
| b) Salvage |
| c) Loss Development |
| d) None of these |