CAS Exam 6C Fall 2018, Question 12

Study guide: Exam 6C

Part a (0.25 points)

Briefly describe the purpose of probable yield tests.

Part b (0.5 points)

Briefly describe the following two elements incorporated in the final premium rates for AgriInsurance programs:

• i. Reinsurance load
• ii. Self-sustainability load

Part c (1.5 points)

Briefly describe the process of self-sustainability assessment in terms of:

• i. Type of simulation
• ii. Length of the financial position projection
• iii. Two possible adverse scenarios under testing
• iv. The criteria of self-sustainability for all scenarios

Answer this question and see the worked solution

Concepts tested

• Agricultural Insurance
• Government Program Evaluation
• Government and Industry Insurance Programs

More questions from this set

• CAS Exam 6C Fall 2018, Question 11
• CAS Exam 6C Fall 2018, Question 13