AIDA 182 EXAM QUESTIONS AND CORRECT
ANSWERS | ALREADY GRADED A+ | VERIFIED
ANSWERS | LATEST VERSION (JUST
RELEASED)
A strong correlation exists between umbrella policy and replacement cost
policy purchases. It would be incorrect to conclude demand increases for
umbrella policies create demand increases for replacement policies, why? -
--------CORRECT ANSWER-----------------Because correlation does not
measure causality.
What is true of regression analysis? ---------CORRECT ANSWER--------------
---The regression line represents the best fit to historical data from prior
periods.
What is trend analysis? ---------CORRECT ANSWER-----------------An
analysis that identifies mathematical patterns in past losses and projects
the patterns into the future.
Regression analysis assumes what? ---------CORRECT ANSWER-------------
----The variable being foretasted varies predictably with another variable.
What is a key performance indicator? ---------CORRECT ANSWER------------
-----A measure of the performance of a specific activity at a predetermined
level or amount.
,What is an example of a key performance indicator based on a ratio? -------
--CORRECT ANSWER-----------------Inventory turnover.
What is the progress of a key performance indicator? ---------CORRECT
ANSWER-----------------A measure of the progress an organization has
made toward attaining its goals within a specific amount of time.
What answers the question, what shows we are a success and working
towards goals, financial or nonfinancial? ---------CORRECT ANSWER--------
---------A key performance indicator.
What involves an apples-to-apples exact matching of losses, premiums,
and exposure units to a specific policy? ---------CORRECT ANSWER---------
--------Policy-year data collection.
True or false, when using prospective loss costs supplied by advisory
organizations, each insurer must file its own loss cost multiplier to
determine its insurance rate. ---------CORRECT ANSWER-----------------
True.
True or false, class relativities are used to develop rates for each rating
class. ---------CORRECT ANSWER-----------------True.
Territorial relativities can be determined by comparing the estimated loss
ratio for each geographic territory to the statewide what? ---------CORRECT
ANSWER-----------------Average loss ratio.
,The future development of losses can be estimated by several actuarial
methods. The most common method used applies loss development
factors to the what? ---------CORRECT ANSWER-----------------Current
experience.
What is correct with respect to the policy-year ratemaking data collection
method? ---------CORRECT ANSWER-----------------It is the only method that
links losses, premiums, and exposure units to a specific policy.
Workers compensation insurance benefits are established by a statute. If
legislation or a court decision changes these benefits, past losses must be
adjust to what? ---------CORRECT ANSWER-----------------Current benefit
levels.
What ratemaking data collection method is the least accurate? ---------
CORRECT ANSWER-----------------Calendar-year.
When using prospective loss costs supplied by advisory organizations to
produce rates, each insurer must apply its own what? ---------CORRECT
ANSWER-----------------Loss cost multiplier.
When creating or revising insurance rates, an insurer's staff or an advisory
organization on behalf of the insurer follows a series of steps. Generally the
first step in this process is to what? ---------CORRECT ANSWER---------------
--Collect data.
, During which one of the following steps in the ratemaking data
development process does an insurer review which areas in a state
deserve higher or lower rates? ---------CORRECT ANSWER-----------------
Determine territorial and c lass relativities.
True or false, exponential trending assumes data will increase by a fixed
percentage. ---------CORRECT ANSWER-----------------True
As a key step in the process of developing insurance rates, actuaries adjust
the premium and loss data that they have collected from past years. Which
one of the following statements concerning this adjustment process is true?
---------CORRECT ANSWER-----------------Loss development factors reflect
growth in incurred reported losses and in IBNR.
When an insurer is under-reserved, its surplus is what? ---------CORRECT
ANSWER-----------------Overstated.
Incurred losses = ---------CORRECT ANSWER-----------------Paid losses +
loss reserves + loss adjustment expense reserves
What is true of under-reserving and its effects on premium rates? ---------
CORRECT ANSWER-----------------Under-reserving makes incurred losses
appear too low and results in rates that are too low.
Incurred but not reported reserves do what? ---------CORRECT ANSWER---
--------------Account for future growth of known losses.
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur nevilletadayo. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €22,27. Vous n'êtes lié à rien après votre achat.
