CAS Exam 5 Spring 2018, Question 3
Study guide: Exam 5
An insurance company expanded its product offering into a new state last year.
Part a (1 point)
Briefly discuss an advantage and disadvantage of using the following data to determine loss trend for this state:
- i. Competitor filings
- ii. Internal company data
Part b (0.5 points)
Explain the loss development and trending overlap fallacy.
Answer this question and see the worked solution