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 |