Actuarial Notes

Exam DISC-RM Practice Question 239

Study guide: Exam DISC-RM

Two claims offices handle the same line. Office X had 800 claims reported, closed 760 of them and paid $3,800,000 on the closed claims. Office Y had 900 reported, closed 630 and paid $2,520,000. Which conclusion is best supported?

  • A) Y handles claims better, because its average paid per closed claim is the lower of the two
  • B) X handles claims better, because it paid more in total on the claims it closed
  • C) The offices perform alike, because their average payments differ by only $1,000 a claim
  • D) Y's average may rise as its open claims close, so no one measure settles it

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