Property and Casualty Insurance - quiz 15 - Amrit Karki
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Question 1 of 10
1. Question
What is the rate manual used for
Correct
Rate manual contains the rate per unit exposure
Incorrect
Rate manual contains the rate per unit exposure
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Question 2 of 10
2. Question
The use of accident year data means?
Correct
Claims data are almost always available in an accident year format
Incorrect
Claims data are almost always available in an accident year format
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Question 3 of 10
3. Question
In the case of the competitive nature of the property/casualty business, which of the following situation should the marketplace adapt to?
Correct
Because of the competitive nature of the property/casualty business, the marketplace should not allow excessive profit and contingency margins
Incorrect
Because of the competitive nature of the property/casualty business, the marketplace should not allow excessive profit and contingency margins
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Question 4 of 10
4. Question
In the case of CREDIBILITY FACTORS, the most recent data should be used when.
Correct
If, however, these data are sparse, the actuary may prefer a greater volume, which may require using older data
Incorrect
If, however, these data are sparse, the actuary may prefer a greater volume, which may require using older data
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Question 5 of 10
5. Question
The credibility of data is a function of.
Correct
The credibility of data is a function of the uncertainty associated with the underlying frequency and severity distributions
Incorrect
The credibility of data is a function of the uncertainty associated with the underlying frequency and severity distributions
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Question 6 of 10
6. Question
In the case of individual risk, rating plans what are manual rates?
Correct
This is the approach used in setting rates for many lines of insurance, such as an individual’s automobile insurance policy or homeowner’s insurance policy.
Incorrect
This is the approach used in setting rates for many lines of insurance, such as an individual’s automobile insurance policy or homeowner’s insurance policy.
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Question 7 of 10
7. Question
In contrast to manual rating plans, individual risk rating plans are plans in which?
Correct
This is the approach used in rating for many commercial lines of business
Incorrect
This is the approach used in rating for many commercial lines of business
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Question 8 of 10
8. Question
In individual risk rating, manual rates may still be used when
Correct
Manual rates are when the size of the risk is not large enough.
Incorrect
Manual rates are when the size of the risk is not large enough.
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Question 9 of 10
9. Question
Funding allocation in individual risk rating is referred as
Correct
When the funding allocation is 100% based on actual losses, there is no risk-sharing among the participants
Incorrect
When the funding allocation is 100% based on actual losses, there is no risk-sharing among the participants
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Question 10 of 10
10. Question
In the case of individual risk rating plan, when the funding allocation is I00% based on exposures
Correct
Each self- insurer would need to establish where to balance its desired level of risk-sharing to set the allocation
Incorrect
Each self- insurer would need to establish where to balance its desired level of risk-sharing to set the allocation