Test12008&solutions

Test12008&solutions - AS 4426F TEST1 October 2nd...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
AS 4426F TEST1 October 2 nd , 2008 Name _______________________ ID_______________ This test will be marked out of 60 (marking scheme reflects 2 bonus marks) PART A is multiple choice question format, and PART B is short answer question format. You may want to use the mark breakdown as a rough guideline for the time spent on each question. Please hand in your exam paper, and examination booklet. Good luck! PART A- Multiple Choice (20 marks). The following 10 questions are each worth 2 marks. Please circle the correct answer on the test page 1. Which of the following statements is true ; i) experience rated groups are those that have between 50 and 200 plan members ii) the majority of group plans are single employer sponsored plans iii) Sun Life Insurance distributes their life insurance products through Career Agents iv) Workmen’s Compensation plans in Canada are privately insured A) (i) B) (ii) C) (iii) D) (iv) E) none of the statements are true 2. Which of the following statements are true ; i) if a select period is used for policies using simplified issue underwriting, the select period should be much longer than for policies using medical underwriting, since the amounts of insurance will be much smaller on average ii) most large insurance companies will only consider their mortality experience when determining their mortality improvement assumptions iii) a selective lapse decreases the average mortality of the remaining group. iv) ignoring mortality improvement factors when pricing Life Insurance would be conservative, but could adversely affect your competitive positioning A) (iii) B) (i) and (iii) C) (iii) and (iv) D) (ii) and (iv) E) (iv) 3. Which of the following statements are true about lapse rates i) standard policies tend to have higher lapse rates in the first four years than substandard policies ii) Generally policies where premiums are paid automatically(e.g. automatic account withdrawals or pre- authorized cheques) have lower lapse rates iii) how an agent’s commission is paid affects lapse rates iv) Lapse rates tend to be lower for larger size policies A) all but (i) B) all but (ii) C) all but (iii) D) all but (iv) E) all statements are true 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4. With respect to individual insurance underwriting methods and SOA studies done ASSERTION(X) REASON(Y) Medical actual/expected (A/E) mortality BECAUSE paramedical underwriting includes more ratios dropped faster than paramedical medical tests than nonmedical underwriting mortality ratios(over 1974-1991) A) both (X) and (Y) are true, and (Y) is a reason for (X) B) both (X) and (Y) are true, but (Y) is not a reason for (X) C) (X) is true but (Y) is false D) (X) is false but (Y) is true E) both (X) and (Y) are false 5. Which of the following statements is true ? (A)mortgages have lower investment expenses than government bonds
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 11/25/2010.

Page1 / 8

Test12008&solutions - AS 4426F TEST1 October 2nd...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online