CAS Exam 5 Spring 2018, Question 1
Study guide: Exam 5
Given the following for an insurance company:
- The exposure base is number of occupants in the home per year.
- The company writes a one-year homeowners policy effective April 1, 2017 for a home with four occupants.
- On October 1, 2017, two occupants leave the home, and the home has only two occupants for the remainder of the policy term.
Part a (0.25 points)
Calculate the total written exposures for calendar year 2017.
Part b (0.25 points)
Calculate the total earned exposures for calendar year 2017.
Part c (0.25 points)
Calculate the total policy year 2017 written exposures evaluated as of September 30, 2017.
Part d (0.75 points)
Briefly evaluate the number of occupants based on the three criteria of an exposure base.
Answer this question and see the worked solution