Insurance Operations- Chapter 7 Problems

Please remember that you must do your own work. Any plagiarism will result in a grade of zero for all students involved. Please use your own words even if you are using the textbook for answers. Always provide a citation when a reference is used.

1. Describe the areas covered in the actuarial examination process, other than mathematical models and statistical techniques.

2. Describe the primary goal of ratemaking.

3. Name the three rate characteristics on which regulation is generally based and explain why they are importing.

4. List and define the six basic ratemaking terms.

5. Explain why accurate loss reserve estimates are important.

6. Describe factors that can affect the frequency and severity of claims.

7. Identify the two loss ratios used in the loss ratio ratemaking method.

8. Describe the three general categories of data that insurers collect for ratemaking.

9. Identify three factors that should be considered in determining an appropriate experience period.

10. Identify and briefly describe the two principal types of loss reserves.

Text Book: "Entitles Insurance Operations 2nd edition".