CAS Exam 6C Fall 2016, Question 26

Study guide: Exam 6C

Part a (1 point)

According to the Standard of Practice, define claim liabilities and premium liabilities.

Part b (1 point)

Briefly describe four considerations that an actuary should contemplate when estimating the best estimate of claim liabilities or premium liabilities.

Part c (0.5 points)

Claims should be subdivided into reasonably homogeneous groups for the selection of payment patterns. Briefly describe two considerations when dividing the portfolio into groups.

Part d (0.75 points)

Identify three considerations in determining the concentration risk of an insurance company.

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Concepts tested

• Insurance Contract Liabilities
• Standards of Practice
• Loss Reserve Discounting
• Concentration Risk

More questions from this set

• CAS Exam 6C Fall 2016, Question 25
• CAS Exam 6C Fall 2016, Question 27