CAS Exam 5 Fall 2015, Question 16
Study guide: Exam 5
Claim #1
| Date | Event |
|---|---|
| January 4, 2012 | Accident occurs |
| May 1, 2012 | Claim is reported and opened with initial case outstanding of $5,000 |
| December 1, 2012 | A payment of 2,000 is made and case outstanding is reduced to 4,000 |
| January 15, 2013 | Claim is closed with an additional payment of $8,000 |
| June 1, 2013 | A deductible amount of $1,000 is recovered on the claim |
Claim #2
| Date | Event |
|---|---|
| December 1, 2012 | Accident occurs |
| January 15, 2013 | Claim is reported and opened with initial case outstanding of $1,000 |
| January 31, 2014 | Case outstanding is reduced to $500 |
| February 20, 2014 | Claim is closed with a total payment of $3,000 |
Claim #3
| Date | Event |
|---|---|
| November 1, 2013 | Accident occurs |
| November 3, 2013 | Claim is reported and opened with initial case outstanding of $10,000 |
| January 30, 2014 | Claim is closed without payment |
Claim #4
| Date | Event |
|---|---|
| July 15, 2014 | Accident occurs |
| July 17, 2014 | Claim is reported and opened with initial case outstanding of $3,000 |
Part a (1.75 points)
Using the claims data above, build the following cumulative development triangles with annual December 31 valuations:
i. Report year reported claims net of any recoveries ii. Accident year paid claims net of any recoveries
Part b (1 point)
Briefly discuss one advantage and one disadvantage of using each of the data aggregation methods in part a. above when performing an unpaid claim analysis.
Answer this question and see the worked solution