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5. Which of the following are generally reviewed as the
actuary's primary responsibilities in rate-making?

A. Pure Premium
B. Affordability of coverage.
C. Desired level of profit
D. What the competition is charging
E. Changes in applicable income tax laws
F. Anticipated marketing expenses
G. Relationship between price and demand for coverage.
Ans. A

6. Credibility has the following criteria that must be met.
A. Credibility must not be less than zero or greater than one.
B. Credibility should decrease as the size of risk decreases all

else being equal.
C. The percentage change for any loss of a given size should

increase as the size of risk increases.
Which of the above criteria is correct?
Ans. A

7. Which of the following dates, if any, is not relevant for
estimating IBNR

A. Accident Date

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