IC47A-1 CASUALTY ACTUARIAL SCIENCE PART 1 - 15

Q1.Under which risk, there is both the chance of loss and the chance of gain?
   a) Objective risk
   b) Pure risk
   c) Speculative risk
   d) Subjective risk
 
Q2.Which method adjusts calendar year earned premiums to current rate levels based upon simple geometric relationships and underlying assumptions that exposure is uniformly distributed over time?
   a) Extension of exposure technique
   b) Parallelogram method
   c) Loss ratio method
   d) Pure premium method
 
Q3.Which of the following is not one of the basic types of prospective individual risk rating systems?
   a) Schedule rating
   b) Experience rating
   c) Some type of composite rating
   d) None of the above.
 
Q4.Generally, insurers maintain claim data according to the following dates:- Which of the above dates, if any, is least relevant?
   a) Policy issue date
   b) Accident date
   c) Report date
 
Q5.A total loss reserve consists of how many elements?
   a) Two
   b) Three
   c) Five
   d) Seven
 
Q6.U.L.A.E. does not include:
   a) Costs associated with Printing the Rate Manual.
   b) Salary of Claims Vice-President.
   c) Outside Legal Expense on a Specific Claim.
 
Q7.In which theory, levels of satisfaction or utility are established to correspond with the various possible outcomes?
   a) Game theory
   b) Utility theory
 
Q8.If : Exposure Units = 84,653 Claim Count = 885, and Scale Factor = 1,000; Then : find Frequency per k Exposure Units?
   a) 7.24
   b) 10.45
   c) 13.54
   d) 15.65
 
Q9.Insurance company expenses associated with the settlement of claims, as distinguished from the marketing, investment, or general administrative operations, are referred to as _____.
   a) Expenses
   b) Loss adjustment expenses
   c) Allocated loss adjustment expenses
   d) Unallocated loss adjustment expenses
 
Q10.Which rating uses an entity's actual experience to modify manual rates(determined by the entity's rating group?
   a) Experience rating
   b) Schedule rating
   c) Composite rating
   d) None of the above

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