CAS Exam 8 Fall 2017, Question 10
Study guide: Exam 8
An actuary is evaluating a risk to determine the appropriateness of applying any schedule credits or debits. In order to reduce expenses the insured removed a safety program 2 years ago and in the next month will be reducing its staff.
| Risk Characteristic | Description | Range of Modifications: Credit | Range of Modifications: Debit |
|---|---|---|---|
| Cooperation | Safety Program | 10% | 10% |
| Employees | Selection, training, supervision, experience | 5% | 5% |
Recommend and defend an appropriate schedule modification.
Part a (1 point)
Answer this question and see the worked solution