SOA GIADVGeneral Insurance — Advanced Topics
Fellowship (FSA)
4 hours·8–10 written-answer questions·≈400 study hoursScore 0/0 · 6 MC
- GIADV · Q1Multiple choiceIndividual risk rating & retrospective plans
A retro-rated policy has basic premium 15,000, a loss conversion factor of 1.05, and converted losses computed from actual (unconverted) losses of 80,000, subject to a maximum premium of 120,000. Calculate the retro premium.
- GIADV · Q2Written answerIndividual risk rating & retrospective plans
Explain the purpose of Table M (insurance charge tables) in retrospective rating and why an entry ratio-based approach is used instead of directly modeling dollar losses.