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June 25th, 2014, 10:07 AM
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IRDA Insurance Institute of India, Foundation of casualty Actuarial Science, Part I Exam paper
Please provide me question paper for IRDA, Insurance Institute of India, Foundation of casualty Actuarial Science, Part I Examination ? Here I am giving you question paper for IRDA, Insurance Institute of India, Foundation of casualty Actuarial Science, Part I Examination in PDF file attached with it so you can get it easily. j 1. A non-life insurer is planning to develop a new‘product. To produce appropriate r premium rates which of the following methodis likely to be. used? ' / A A B C 1 D 2 Which of the following is not an allocated Loss Adjustment Expenses ' A UOUTJ 3_ the context of reserving for allocated loss adjustment expenses (ALAE) v Which of the following statements is incorrect? A B a C D 4 An insurer has, in a certain class of business Number of exposures ' 100 Premium Per policy 7500 Expenses per policy ~ 400 Margin for profit + contingency 10% Investment Income 45000 _ None of the above particular large claim - Rent for the office space used by cl'aim department 7 Outside legal counsel yCOmbining ALAE with losses is similar to combining two non- - homogeneous lines of business ' ' Total Marks = 100 Pure premium method . > Paid or incurred loss development method Loss ratio method ' _ Expenses in connection with appointment of an investigator for a Court costs We may include ALAE with losses, and estimate the total liability It is a statutory requirement to deal with ALAE and losses separately while determining the liability , It is desirable to treat ALAE and losses‘separately for monitoring actual experience against projected experience for each component Av claim size ‘ 150000 underwriting profit/(loSs) of the insurerlfor this class is : 5000 ' B 1 - 70000 I v . 1 C - 40000 ' ‘ p \ If the above insurer (in Q1) had written 10000 policies and claim size was a ‘ uniform 120000. The insurer will not have underwriting loss so long as the number of claims docs not exceed underwriting profit/(loss) of the insurer for this class is: ‘ a > ‘ AI 21 B 18 C ‘19 D 20 ‘ Which of the following statements is incorrect? Large insurance companies require reinsurance because A They may write very large or unusual risks B They may be prone to significant accumulations C They haVe a diversifiedportfolio D- They may have very volatile claim experience Which [of the fellowing statements is incorrect ? A. ~ Unexpired risk reserve (URR) is the name given for prospective assessment of reserve needed to cover unexpired risks ' ' B URR is effectively the same as unearned premium reserve (UPR) C If URR differs from UPR, reserve to be set up is the higher of the two‘ D If URR differs from UPR, reserve to be set up is the smaller of the two Which Line of business, (below), can be expected to show lower variability of pure premium ? - ' Y ' A line of business characterized by low frecjuency-high severity A line of business characterized by high frequency-low severity A line of business characterized by high deductibles A line of business characterized by low commission rates 11 Given the following information : Written premium 1 1540000 Earned Premium 10832000 Incurred Losses & ALAE 7538000 Incurred ULAE 484000 Commissions 173 1000 Tax on premiums 260000 Acquisition costs 646000 General expenses 737000 The targetLoss ratio is given by (1-V-Q)/(1+G) where V = premium related expense factor Q = profit & contingencies factor ~ G = ratio of non-premium related expenses to Losses The calculated target loss ratio is :' A , B C D 66.5% 67.5% 61.4% 58.0% Which of the following is (are) example(s) of'retrospective experience-rating? "A Profit sharing, where the insurer charges a higher initial premium, and returns some profit to policyholders whose claims 'are lower than expected. 7 The policyholder pays an end of year adjustment premium to reflect the amount of exposure during the year (e. g. as in employer's liability). As for l, but the adjustment is based on the insurer's overall experience for all policies of this type. - _ A system where a policyholder's next premium is the average of the insurer‘s book rates and the policyholder's average claims cost over the last ‘ year. Which of the following statements is incorrect ‘? A B C D Loss Development method is not suitable for a new line of business Loss DeVelopment method produce unreliable results for a volatile line of business ' . Loss Development methOd produce results which are stable from year to year ‘ > Loss Development 'method produce results which are not stable from year to year 12 One practical consideration in selecting rating variable is the avoidance of extreme discontinuities. In this context which of the following statements is incorrect? ' i A Wide discontinuities act as incentive for the insured to cheat the insurer B Cost of verification will be very high with fewer classes C Insurer must construct gradual changes‘in rates D For credibility purposes there may be fewer classes worth widely varying rates -' 13 The correlation coefficient between two variables x and y 'is r. Which'of the following statements is true? A O < r < l B 0 < = r < = l C -1 < r < ‘1 D -1 <= r <= 1 14 Which of the following statements is incorrect? ' A "Casuality" implies an intuitive relationship to insurance costs B "Casuality" implies a closer relationship to costs than correlation C From an actuarial point of view correlated variables provide more accurate - premiums ' ' D Eliminating correlated non-casual variables may produce a more accurate rating system. 15 Which of the following statements is incorrect? Some attributes of a good Individual rating system are: A They serve the needs of the organization B They appropriately balance risk sharing and risk bearing C They are capable of internal manipulation D They are easy to understand ESSAY-TYPE QUESTIONS (All questions carry 10 marks each) 16 Write short notes on : ~ (i) Poisson distribution (ii) Credibility of data in the context of risk classification (iii) Experience rating (credit)/debit (iv) Reserve discounting 5 17 18 19 20 Explain how to measure the variations in the costs among the insured population Describe the various prospective rating systems? Explain the terms "Paid Loss Development Factors", "tail-factor" and their application in loss reserving. ' ' The Pure premium method provides rates which are expected to provide for the expected losses, expenses and expected profit based on the formula R = P+F l-V -Q‘ (i) What do each of the symbols in the above formula represent? ' i (ii) Write down the corresponding formula for Loss ratio method and establish 22 ' up the ultimate loss? the equivalence between the two under consistent assumptions? Explain in detail the different items of "Loss comp0nents" and how they make Classify rating variables in automobile insurance into broad categories and explain how they contribute to cost differences? The End ....... .. Last edited by Neelurk; March 20th, 2020 at 11:06 AM. |
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