What occurs when the policyholder has sustained the loss and usually settles quickly?
A. first-party claim
B. second-party claim
C. reopened claim liability
D. persistent coverage
In _______________, the insurance company defends the policyholder for claims made by others.
A. first-party claim
B. second-party claim
C. third-party claim
D. fourth-party claim
An insurance company's net loss and loss adjustment expense liabilities are affected by the reinsurance it has purchased from other companies.
A. True
B. False
The greater the size of the Incurred but not reported (IBNR) liabilities, the longer the:
A. catastrophe procedure
B. track claims
C. emergence pattern
D. settlement pattern
The catastrophe-in-transit (CIT) reserve should be included to cover the liability for the claims that remain unpaid and unrecorded.
A. True
B. False
What if change, will change the meaning of the transaction data that the actuary uses to estimate liabilities?
A. small claims
B. subrogation
C. Salvage sources
D. precautionary notices
Changes in the ______________will trigger changes in the size and importance of the supplemental reserve.
A. settlement patterns
B. agent pay program
C. non-litigated claims
D. collateral sources
In estimating loss and loss adjustment expense, the actuary attempts to group claims into:
A. heterogeneous groups
B. business groups
C. homogeneous groups
D. coverage extensions groups
_____________ can increase by dividing the data into homogeneous blocks or by increasing the amount of relevant data in each block.
A. Credibility
B. Operability
C. Endorsements
D. Managerial general agents
What measure the amounts at risk in a book of business?
A. Policy limits
B. Exposure bases
C. Line of business
D. Underwriting cycle
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