UNIT 7 QUIZ - ACTUARIAL
OPERATIONS QUESTIONS AND
VERIFIED ANSWERS|100%
CORRECT|GRADE A+
The two most prominent functions of actuaries are __________ and loss reserving. - ANSWER rate
making
A regulatory ratemaking objective is that rates are adequate, but not excessive and not ______________
discriminatory. - ANSWER unfairly
What ratemaking method would be most appropriate for a completely new line of business with no
available historical claims information? - ANSWER judgement method
Reported Losses (in $1000)
Accident Year Months of Development
12 24 36
1 5500 5250 6000
2 6500 6750
3 7500
Considering the above loss triangle, what is the 24 to 36 month (i.e., one year) loss development factor?
Please answer to four decimal points. - ANSWER 1.1428
6,,250 = 1.1428
Reported Losses (in $1000)
OPERATIONS QUESTIONS AND
VERIFIED ANSWERS|100%
CORRECT|GRADE A+
The two most prominent functions of actuaries are __________ and loss reserving. - ANSWER rate
making
A regulatory ratemaking objective is that rates are adequate, but not excessive and not ______________
discriminatory. - ANSWER unfairly
What ratemaking method would be most appropriate for a completely new line of business with no
available historical claims information? - ANSWER judgement method
Reported Losses (in $1000)
Accident Year Months of Development
12 24 36
1 5500 5250 6000
2 6500 6750
3 7500
Considering the above loss triangle, what is the 24 to 36 month (i.e., one year) loss development factor?
Please answer to four decimal points. - ANSWER 1.1428
6,,250 = 1.1428
Reported Losses (in $1000)
