Page 293 - ic92 actuarial

Foundations of Casualty Actuarial Science

2. Is the following statement true or false?
Pure premium equals the product of frequency per unit of
exposure and number of exposures.

Ans. False

3. In the formula :

T = I-V-Q
I+G

What do T,V,Q and G stand for?
Ans.

T = Target Loss Ratio
V = Total Premium Related Expance Factor
Q = Profit & Contingency Factor
G = Ratio of Non-Premium Related Expance to Loss

4. What do the following stand for?
A. CAS, B. IBNR, C. ALAE, D. NCCI

Ans.
A. CAS - Casualty Actuarial Science
B. IBNR - Incurred But Not Reported
C. ALAE - Allocated Loss Adjustment Expance
D. NCCI - National Council on Compensation Insurance

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