CAS Exam 5 Spring 2019, Question 1
Study guide: Exam 5
Given the following:
| Policy | Number of Vehicles | Effective Date | Expiration Date |
|---|---|---|---|
| A | 2 | January 1, 2018 | June 30, 2018 |
| B | 3 | March 1, 2018 | August 31, 2018 |
| C | 1 | July 1, 2018 | December 31, 2018 |
| D | 2 | October 1, 2018 | March 31, 2019 |
| E | 1 | November 1, 2018 | April 30, 2019 |
- All policies remain in-force until their expiration date.
- An exposure is defined as one vehicle insured for one year.
Part a (0.25 points)
Calculate the calendar year 2018 written exposures.
Part b (0.5 points)
Calculate the calendar year 2018 earned exposures.
Part c (0.5 points)
Calculate the policy year 2018 earned exposures as of February 28, 2019.
Part d (0.25 points)
Calculate the in-force exposures as of October 15, 2018.
Part e (1 point)
Identify two criteria of an exposure base and briefly evaluate miles driven as an exposure base for personal auto insurance using those criteria.
Answer this question and see the worked solution