CAS Exam 8 Fall 2012, Question 13

Study guide: Exam 8

The NCCI uses several procedures to add stability to workers compensation experience rating.

Part a (1 point)

Using the NCCI methods as a model, propose two procedures to add stability to terrorism insurance ratemaking.

Part b (1 point)

For each procedure in part a. above, provide one argument against including it in terrorism insurance ratemaking.

Answer this question and see the worked solution

Concepts tested

• Experience Rating
• Credibility
• Catastrophe Risk

More questions from this set

• CAS Exam 8 Fall 2012, Question 12
• CAS Exam 8 Fall 2012, Question 14