IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 14
| Q1.Which theory is a useful way for insurers to analyze whether their insurance has a market at the price it is offered and for potential insureds to evaluate the insurance offered? |
| a) Dynamic theory |
| b) Game theory |
| c) Utility theory |
| d) Static theory |
| Q2.This is not an attribute of a good rating system: |
| a) It is simple to administer. |
| b) It serves the need of the organization using it. |
| c) It is easy to understand. |
| d) It need not balance risk-sharing and risk-bearing. |
| Q3.Amounts paid or payable to claimants under the terms of insurance policies are referred to as _____. |
| a) Profits |
| b) Losses |
| c) Gains |
| d) Bonus |
| Q4.What is part of the mathematical subject of stochastic processes that also is applied in the physical sciences and finances? |
| a) Risk control |
| b) Risk management |
| c) Risk Theory |
| d) Rate making |
| Q5.Which of the following divides paid losses at each development age by reported losses as of the same development age and this statistic tests the consistency of the development of paid and reported losses? |
| a) Cumulative Paid Losses |
| b) Paid Loss as a Percent of Incurred Loss |
| c) Incremental Incurred Losses |
| d) Incremental Paid Losses |
| Q6.I.B.N.R. means: |
| a) Incurred But Not Repudiated. |
| b) Incurred But Not Recorded. |
| c) Informed But Not Registered. |
| d) Incurred But Not Reported. |
| Q 7. In which theory, levels of satisfaction or utility are established to correspond with the various possible outcome? |
| a) Game theory |
| b) Utility theory |
| Q8.Which are exposures units exposed to loss at a given point in time? |
| a) Written exposure |
| b) In-force exposures |
| c) Earned exposures |
| d) None of the above |
| Q9.C.A.P.M. means: |
| a) Control Analysis Payout Mechanism |
| b) Changed Account Payment Method |
| c) Capital Asset Pricing Model |
| d) Company Account Profit Margin |
| Q10.What is the number of occurrences per exposure unit and it is sometimes incorrectly used to refer to the number of claims or occurrences? |
| a) Severity |
| b) Claims |
| c) Frequency |
| d) Occurrences |