CAS Exam 6C Spring 2016, Question 9

Study guide: Exam 6C

Part a (0.75 points)

Briefly describe the origin, role and goal of the Facility Association.

Part b (0.5 points)

Identify two risk-sharing mechanisms used by the Facility Association.

Part c (1 point)

Compare and contrast the two mechanisms described above with respect to:

• i. Risk insured
• ii. Underwriting and pricing of risk insured

Answer this question and see the worked solution

Concepts tested

• Facility Association
• Risk Sharing Pool
• Residual Market

More questions from this set

• CAS Exam 6C Spring 2016, Question 8
• CAS Exam 6C Spring 2016, Question 10