CAS Exam 6C Spring 2015, Question 18

Study guide: Exam 6C

Part a (1.5 points)

Briefly describe three sound practices for each of the following earthquake model components:

• i. Model version
• ii. Model validation

Part b (0.75 points)

Identify three non-modeled exposures or risk factors in an earthquake model.

Part c (0.5 points)

Identify one restrictive condition for each of the following financial resources if insurers use them to support their earthquake exposures:

• i. Capital market financing
• ii. Reinsurance coverage

Answer this question and see the worked solution

Concepts tested

• Earthquake Exposure Risk Margin
• Catastrophe Modelling
• Probable Maximum Loss
• Model Risk

More questions from this set

• CAS Exam 6C Spring 2015, Question 17
• CAS Exam 6C Spring 2015, Question 19