Exam (elaborations)
RMIN 4000 EXAM 2 - CH 6/7/QUESTIONS WITH A+ GRADED ANSWERS
- Course
- Institution
RMIN 4000 EXAM 2 - CH 6/7/QUESTIONS WITH A+ GRADED ANSWERS
[Show more]
Content preview
RMIN 4000 EXAM 2 - CH6/7/QUESTIONS WITH A+ GRADED
ANSWERS
what are the major operations of insurance companies - -rate making,
underwriting, production, claims settlement, reinsurance, investments
- pricing of insurance and the calculation of insurance premiums - -rate
making
- person who uses statistical methods to analyze loss and other data to
determine rates/premiums - -actuary
- components of gross rate - -prospective loss costs
expense provision
profit and contingencies
- prospective loss costs aka - -pure premium
- expense provision aka - -load
- profit and contingencies aka - -risk charge
- amount needed to pay future claims and loss adjustment expenses - -
prospective loss costs (pure premium)
- amount needed to pay future expenses (acquisition, overhead, premium
taxes) - -expense provision (load)
- amount needed to protect against the possibility that actual
claims/expenses exceed projections - -profit and contingencies (risk charge)
- expenses associated with adjusting claims - -loss adjustment expenses
(LAE)
- unit of measurement used in pricing (ex. car years, per $100 in coverage,
etc.) - -exposure unit
- gross rate x # of exposure units - -gross premium
- what are the 4 types of ratemaking methods - -class (manual) rating
loss ratio method
merit rating
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursephil2023. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76799 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now