Que. 1 : Q1) Which policies cover the losses(or losses and
ALAE, depending on policy definitions) paid during the policy period,
regardless of the associated occurrence or claim report dates if these dates
are after the appropriate retroactive dates?
1. a) Claims-made policies
2. b) Claims-paid policies
Que. 2 : Q2) The correlation coefficient between two
variables x and y is r. which of the following statements is true?
1. a) 0 < r < 1
2. b) 0 < = r < = 1
3. c) -1 < r < 1
4. d) -1 < = r < = 1
Que. 3 : Q3) Which of the following statements is correct?
1. a) A risk neutral decision maker would
have a utility function that is exponential.
2. b) A risk averse decision maker would
have a utility function that decreased at a progressively lower rates or had a
positive second derivative.
3. c) A decision maker who favoured risk
would have a utility function that increased at a progressively faster rate or
had a positive second derivative.
4. d) All the above statements are correct.
Que. 4 : Q4) If:
Preminum-Related Expense Factor = 0.2965,
Profit and Contingencies Factor = 0, and
Ratio of Non-Premium-Related Expense to Losses = 0.0642,
Target Loss Rotio is:
1. a) 0.1166
2. b) 0.1616
3. c) 0.6611
4. d) 0.6161
Que. 5 : Q5) Accounting Date is ….
1. a) The Date on Which the Loss Occurred
2. b) The Date on Which the Loss is First
3. c) The Date on Which the Loss is
First Recorded in the insurer’s statistical information.
4. d) The Date used to deﬁne the Group of Claims to be included in the Liability Estimate.