SOA GIADVGeneral Insurance — Advanced Topics

Fellowship (FSA)

4 hours·8–10 written-answer questions·≈400 study hours

Score 0/0 · 6 MC

GIADV · Q1
Multiple choice
Excess, deductible & increased-limits pricing
ILFs relative to a 100,000 basic limit are 1.45 at 500,000 and 1.70 at 1,000,000. The basic-limit loss cost is 2,000. Calculate the expected loss in the layer 500,000 excess of 500,000.
GIADV · Q2
Written answer
Excess, deductible & increased-limits pricing
Losses are exponential with mean 100,000. Show that a 10% severity trend increases expected losses in the layer 500,000 xs 500,000 by more than 10% (the leveraged effect of trend).
GIADV · Q3
Written answer
Excess, deductible & increased-limits pricing
Explain the difference in ALAE treatment between a 'pro rata' allocation and an 'ALAE included in the limit' treatment when pricing an excess-of-loss layer, and how each affects the expected cost of the layer.
GIADV · Q4
Multiple choice
Excess, deductible & increased-limits pricing
Increased limits factors (ILFs) relative to a 100,000 basic limit are 1.30 at 250,000 and 1.55 at 500,000. The basic-limit loss cost is 3,000. Calculate the expected loss in the layer 250,000 excess of 250,000.