Q-11- The formula for Credibility is
Z= credibility factor
- Expected Claim cost=Experienced Claim cost+(1-Z) x similar group’s Claim Cost
- Expected Claim cost=Experienced Claim cost-(1+Z) x similar group’s Claim Cost
- Expected Claim cost=Experienced Claim cost+(1-Z) / similar group’s Claim Cost
- Expected Claim cost=Experienced Claim cost/(1-Z) x similar group’s Claim Cost
Option-1 The formula for credibility is Expected Claim cost=Experienced Claim cost+(1-Z) x similar group’s Claim Cost.
Q-12- Which is the most appropriate reference w.r.t. a ‘Claim’?
- a loss/damage occured
- a probability of loss/damage occured
- an estimation of loss/damage occurred
- a demand of loss/damage to recover that loss
Option-4 A Claim is a demand by an individual or toher entity to recover for that loss/damage.
Q-13- What is Loss adjustment expenses(LAE)?
- LAE = total profit- actual loss
- expenses associated with settling of claim
- expenses added to reach a desired loss figure
- none of above
Option-2 Loss adjustment expenses(LAE) are expenses associated with settling of claim.
Q-14- Reported losses are
- sum of payments – case reserves
- sum of payments x case reserves
- sum of payments + case reserves
- sum of payments / case reserves
Option-3 Reported losses are sum of payments + case reserves.
Q-15- Unreported losses are
- case reserve development – unreported occurences/claim reserves
- case reserve development + unreported occurences/claim reserves
- case reserve development x unreported occurences/claim reserves
- case reserve development / unreported occurences or claim reserves
Option-2 Unreported losses are case reserve development + unreported occurences/claim reserves.
Q-16- Formula for Frequency is
Fk=frequency per k exposure units, k= scale factor, C=claim count, E=exposure units
- Fk=kXC/E
- Fk=k+C/E
- Fk=kC/E
- Fk=k-C/E
Option-3 Formula for Frequency is Fk=kC/E.
Q-17- Which of the following is a disadvantage of Free cover limit(FCL) provided under Group insurance?
- Saves time
- Anti-selection
- Cost reduction
- Spread of mortality risk
Option-2 The disadvantage of Free cover limit(FCL) provided under Group insurance is Anti-selection.
Q-18- The method of Pension Scheme is
- Fully funded pension scheme
- Pay as you go pension scheme
- both above
- none of above
Option-2 Both above are the methods of Pension Schemes.
Q-19- Which of the below section of The Income Tax Act deals with the ‘Charge of Income Tax’?
- Section 4
- Section 5
- Section 10
- Section 17
Option-1 Section-4 of the Income Tax Act deals with the ‘Charge of Income Tax’.
Q-20- Which of the following is deal by Section-17 of the Income Tax act.
- Salary
- perquisite
- Profits in lieu of Salary
- all above
Option-4 Section-4 of the Income Tax Act deals with all of the above,
These Insurance GK questions are based on Reinsurance and Risk factors in form of Insurance quiz and answers.