IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 14

Que. 1 : Q1) If Year ending loss reserves are Rs. 4 lakhs Paid losses in the year are Rs. 8 lakhs Beginning loss reserves are Rs. 2 lakhs The incurred losses in a year are

   1.  a) 4,00,000

   2.  b) 6,00,000

   3.  c) 8,00,000

   4.  d) 10,00,000

Que. 2 : Q2) Process Risk is

   1.  a) Risk associated with the selection of the parameters underlying the applicable Model of the Process.

   2.  b) Risk associated with the Rejection of the Parameters underlying the applicable Model of the Process.

   3.  c) Risk associated with the Projection of Future Contingencies that are inherently variable.

   4.  

Que. 3 : Q3) Which of the following is not a characteristic of an ideally insurable exposure?

   1.  a) The exposure transferred should be subject to pure risk.

   2.  b) The exposure should reduce total risk management costs.

   3.  c) The loss should be accidental from the viewpoint of the insured.

   4.  d) The expected loss over some reasonable period of time should be estimable.

Que. 4 : Q4) What is the average loss per claim(or per occurrence) and note that loss may include or exclude ALAE?

   1.  a) Severity

   2.  b) Claims

   3.  c) Frequency

   4.  d) Occurrences

Que. 5 : Q5) Given that : Rate per unit exposure = Rs. 75.00 Fixed expenses per exposure = Rs. 13.75 Variable expense factor = 10% Profit and contingency factor = 5% The Pure premium will be :

   1.  a) Rs.50

   2.  b) Rs.70

   3.  c) Rs.80

   4.  d) Rs.90