Actuary Exam Questions & Answers 2023/2024
An insurer offers a health plan to the employees of a large company. As part of this plan, the individual employees may choose exactly two of the supplementary coverages A, B, and C, or the may choose no supplementary coverages. The proportions of the...
An insurer offers a health plan to the employees of a large company. As part of this plan, the individual
employees may choose exactly two of the supplementary coverages A, B, and C, or the may choose no
supplementary coverages. The proportions of the company's employees that choose coverages A, B, and
C are 1/4, 1/3, and 5/12, respectively. Determine the probability that a randomly chosen employee will
choose no supplementary coverage.
A. 0
B. 47/144
C. 1/2
D. 97/144
E. 7/9 - ANSWER-C. 1/2
You are given P[A or B] = 0.7 and P[A or B'] = 0.9. Determine P[A]
A. 0.2
B. 0.3
C. 0.4
D. 0.6
E. 0.8 - ANSWER-D. 0.6
The probability that a member of a certain class of homeowners with liability and property coverage will
file a liability claim is 0.04, and the probability that a member of this class will file a property claim is 0.1.
The probability that member of this class will file a liability claim but not a property claim is 0.01.
Calculate the probability that a randomly selected member of this class of homeowners will not file a
claim of either type.
A. 0.85
, B. 0.86
C. 0.864
D. 0.87
E. 0.89 - ANSWER-E. 0.89
An actuary studying the insurance preferences of automobile owners make the following conclusions:
1) An auto owner is twice as likely to purchase collision coverage as disability coverage
2) The event that an auto owner purchases collision coverage is independent of the event that they
purchase disability coverage.
3) The probability that an auto owner purchases both collision and disability coverages is 0.15.
What's the probability that an auto owner purchases neither collision nor disability coverage?
A. 0.18
B. 0.33
C. 0.48
D. 0.67
E. 0.82 - ANSWER-B. 0.33
An insurance company pays hospital claims. The number of claims that include emergency room or
operating room charges is 85% of the total number of claims. The number of claims that don't include
emergency room charges is 25% of the total number of claims. The occurrence of emergency room
charges is independent of the occurrence of operating room charges on hospital claims. Calculate the
probability that a claim submitted to the insurance company includes operating room charges.
A. 0.1
B. 0.2
C. 0.25
D. 0.4
E. 0.8 - ANSWER-D. 0.4
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