CAS Exam 6C Fall 2015, Question 10
Study guide: Exam 6C
National Certification Guidelines developed by Agriculture and Agri-Food Canada (AAFC) provide guidance to actuaries in developing an actuarial certification for an agricultural insurance program.
Part a (0.5 points)
Briefly describe the following components of pricing yield-based plans:
- Uncertainty margin
- Self-sustainability load
Part b (0.5 points)
Briefly explain the need for both an uncertainty margin and the self-sustainability load in pricing yield-based plans.
Part c (0.5 points)
Briefly describe two additional considerations that are required for pricing non-yield-based plans as compared to pricing yield-based plans.
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