CAS Exam 5 Fall 2016, Question 10
Study guide: Exam 5
(1 point)
A homeowners insurance company is considering utilizing number of vehicles in the household as an additional risk characteristic within its risk classification system.
Briefly discuss the appropriateness of adding this risk characteristic to the company's risk classification system using four considerations from the Actuarial Standard of Practice No. 12: Risk Classification (for All Practice Areas).
Part a (1 point)
Answer this question and see the worked solution