ACTUARIAL SCIENCE 462/862
SAMPLE QUESTIONS FOR TERM TEST #2
1. Using the minimum bias balance principle and the following information:
a. Determine the indicated relativities for gender and vehicle age. Assume the base relativities
are male, newer vehicle
ACTUARIAL SCIENCE 462
SAMPLE QUESTIONS FOR TERM TEST #2
1. Using the minimum bias balance principle and the following information:
a. Determine the indicated relativities for gender and vehicle age. Assume the base relativities
are male, newer vehicles (e
ACTUARIAL SCIENCE 462/862
SAMPLE QUESTIONSFOR TERM TEST #1
1. Based on the following rate change history, calculate the on level factors needed to adjust the
2007, 2008 and 2009 historical earned premiums to the current rate level. Assume all policies
are
ACTUARIAL SCIENCE 462/862
SAMPLE QUESTIONS FOR CHAPTERS 13-15
1. An insurance company uses experience rating and schedule rating to calculate Commercial General
Liability (CGL) premium for automobile parts manufacturers.
A schedule rating credit of up to
ACTSC 462/862
P&C Insurance Ratemaking
Lecture 9
1
Basic Ratemaking
Chapter 13: Other Considerations
2
Basic Ratemaking Chapter 13
> Chapter covers:
This chapter explores other considerations
company management should make, along with
the cost-based rate
ActSc 462/862
Lecture #3
Slide 34:
Loss Trend Example (2 step trending):
2 step trending: this technique is beneficial when the actuary believes that the
los trend in the historical experience period and the expected trend for the
forecast period are not
ACTSC 462/862
P&C Insurance Ratemaking
Lecture 7
1
Previous Lecture
>
Basic Ratemaking Chapter 10
Circumstances that led to the adoption of multivariate
approaches in classification ratemaking
The overall benefits of multivariate approaches
Minimum bias e
ACTSC 462/862
P&C Insurance Ratemaking
Lecture 10
1
Previous Lecture
>
Basic Ratemaking Chapter 13
Other considerations company management should make
to determine what rates to charge in practice:
Regulatory constraints
Operational constraints
Market
2015 ACTUARIAL SCIENCE 462/862
TERM TEST #1 - SOLUTIONS
1.
(1 point) Explain how general (property & casualty) insurance is considered a contract of indemnity.
Solution:
Insureds are entitled to recover an amount not greater than that which would be neces
2015 ACTUARIAL SCIENCE 462/862
TERM TEST #2 - SOLUTIONS
1. (1 point) Describe one criterion an actuary should look for when considering the statistical
significance of a rating variable.
Solution:
Any one of the following:
The expected cost estimate shou
ACTUARIAL SCIENCE 462/862
SAMPLE QUESTIONS FOR CHAPTERS 13-15
1. An insurance company uses experience rating and schedule rating to calculate Commercial General
Liability (CGL) premium for automobile parts manufacturers.
A schedule rating credit of up to
UNIVERSITY OF WATERLOO
ACTUARIAL SCIENCE 862
TERM TEST #2
TUESDAY MARCH 13, 2012
(4) 1. Using the following information, calculate indicated territorial relativities using this most recent
experience.
Premium at
Current
Territory Rate Level
1
520,000
2
1,
UNIVERSITY OF WATERLOO
ACTUARIAL SCIENCE 462/862
TERM TEST #1
TUESDAY FEBRUARY 5, 2013
(2) 1. The following information represents transactions of 2 claims that occurred.
Claim
Date of
Transaction
Loss
Case Reserve
Number
Accident
Date
Payment
Balance
1
J
ACTUARIAL SCIENCE 462/862
SAMPLE QUESTIONS FOR TERM TEST #2
1. Using the minimum bias balance principle and the following information:
a. Determine the indicated relativities for gender and vehicle age. Assume the base relativities
are male, newer vehicle
2016 ACTUARIAL SCIENCE 462
TERM TEST #1 - SOLUTIONS
1.
(1 point) Explain how general (property & casualty) insurance is considered a contract of indemnity.
Solution:
Insureds are entitled to recover an amount not greater than that which would be necessary
ActSc 462/862
Lecture #2
Slide 33:
Premium Adjustment Example:
Assuming the same historical rate change information from slide #21:
Assume annual premium trend factor = 2% (just use one-step trending)
Calculate adjusted premium for each year assuming r
ACTSC 462/862
P&C Insurance Ratemaking
Lecture 3
1
Previous Lecture
1. Basic Ratemaking Chapter 4
exposure is the basic unit that measures a policys
exposure to loss therefore the exposure serves as the
basis for the calculation of premium
written, earned
ACTUARIAL SCIENCE 462/862
SAMPLE QUESTIONS
1. Based on the following rate change history, calculate the on level factors needed to adjust the
2007, 2008 and 2009 historical earned premiums to the current rate level. Assume all policies
are 6-month policie
ACTSC 462/862
P&C Insurance Ratemaking
Lecture 1
1
ACTSC 462/862
Course Description
> This course is focussed on the practical
aspects of Property and Casualty (P&C)
Insurance in Canada. Through lectures,
course notes and discussion, students will
learn t
ActSc 462/862
Lecture #4
Reference Exhibits for Various Slides
The following references are given from the text that will be handy to have available as
we walk through the various slides.
Slide #28: Reference is Page A-9 from Appendix A
Also, the followi
ActSc 462/862
Lecture #2
Slide 32:
Premium Adjustment Example:
Assuming the same historical rate change information from slide #20:
Assume annual premium trend factor = 2% (just use one-step trending)
Calculate adjusted premium for each year assuming r
ACTUARIAL SCIENCE 462/862
SAMPLE QUESTIONS FOR TERM TEST #2
1. Using the minimum bias balance principle and the following information:
a. Determine the indicated relativities for gender and vehicle age. Assume the base relativities
are male, newer vehicle
ActSc 462/862
Lecture #3
Slide 34:
Loss Trend Example (2 step trending):
2 step trending: this technique is beneficial when the actuary believes that the
los trend in the historical experience period and the expected trend for the
forecast period are not