Actuarial Notes

CAS Exam 6C Spring 2014, Question 7

Study guide: Exam 6C

Part a (0.5 points)

Provide an argument for using credit-based insurance scores according to the "Actuarial Standard of Practice No. 12: Risk Classification".

Part b (0.5 points)

Provide a counter-argument to the answer in part a. above.

Part c (0.5 points)

Briefly describe two guidelines the Insurance Bureau of Canada provides in its code of conduct for insurers' use of credit information.

Part d (0.75 points)

Explain how changes made in 2010 by the Financial Services Commission of Ontario addressed credit-based risk rating in auto insurance.

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Concepts tested

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