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[]
["You must sign your name in cell A12 below"]
["Exam 5: Basic Techniques for Ratemaking and Estimating Claim Liabilities"]
["Spring 2018 Make-up Exam"]
[]
["Candidates must sign below to confirm acknowledgement of the following:"]
["Candidates must not give or receive assistance of any kind during the examination.  Any cheating, any attempt to cheat, assisting others to cheat, or participating therein, or other improper conduct will result in the Casualty Actuarial Society and the Canadian Institute of Actuaries disqualifying the candidate's paper, and such other disciplinary action as may be deemed appropriate within the guidelines of the CAS Policy on Examination Discipline."]
[]
[]
[]
["Candidate Signature:"]
["(sign here)"]
[]
[]
["After your exam, please log on to the CAS website to complete the Exam Survey. The Syllabus & Examination Committee values your feedback."]

{"sheet":"Logging","index":1,"n_rows":2,"n_cols":2,"rows_kept":2,"cut":false,"hidden":true,"merged":[]}
[{"$f":"2+COUNTA(B:B)","v":3}]
["Codename","Timer"]

{"sheet":"Instructions","index":2,"n_rows":43,"n_cols":2,"rows_kept":43,"cut":false,"hidden":false,"merged":[]}
["Instructions Relating to the Virtual Exam Environment"]
[1,"Once this exam begins it will be available for up to FIVE hours.  If you take a break, the exam timer will not stop."]
[2,"The exam will be auto-saved every 60 seconds.  If you wish, you can save it more often. "]
[3,"Do not use \"Save As\" to save the file as a different name.  Only the original file will be graded."]
[4,"Control and Alt keyboard shortcuts may not work in the virtual environment. They have not been intentionally turned off, but these features may work differently in the virtual environment than they do normally, and functionality may vary for different types of computers. Some people have found that Ctrl-C (copy) and Ctrl-V (paste) work while Ctrl-Page Down (switch tabs) does not. In fact, for some, using Ctrl-Page Down creates an unusual situation where additional tabs are grouped with the current tab until the Ctrl key is pressed again. Candidates may want to avoid using this shortcut"]
[5,"You may change keyboard layouts to use a French Canadian keyboard. Click on the \"ENG\" shown in the lower right corner of the virtual environment (not the Excel spreadsheet) and select the desired French keyboard layout."]
[6,"The French language accessory pack is available in the virtual environment. See detailed instructions below."]
[]
["Instructions Relating to the Format of the Exam within Excel"]
[7,"Each question is asked on a single sheet, with the sheet name matching the question number (e.g. Question 1 is on sheet \"1\"). The question number is also shown in cell A1 on each question sheet."]
[8,"On each question sheet, the exam question is provided in a protected grey area; while you may modify the formatting within this area, you may not change the content of the area, insert any rows/columns, or delete any rows/columns. If the content or cell range of the grey area is changed in any way, your answer to that question will NOT be graded."]
[9,"Each question sheet is protected without a password; candidates can choose to unprotect the worksheet at their own risk (see #8 above).  Within a protected sheet you have the ability to select locked and unlocked cells, format cells, and format rows and columns."]
[10,"For each question, the number of points for the full question is indicated in cell A3. The number of points for each subpart is indicated to the left in column A."]
[11,"In cell B1 of each question sheet you have the option to identify the status of your answer as \"Incomplete\", \"Finished\", or \"Review\".  Any selections made will also appear in the Point Grid sheet.  These selections are optional and solely for your benefit, and they will not be provided to the graders."]
[12,"Candidates can change the size of the Excel content by changing the zoom slider in the lower right corner of Excel. Multiple sheets can be adjusted at the same time by selecting them before zooming."]
[13,"DO NOT use \"Clear Formats\" or \"Clear All\" to remove cell contents. Doing so will lock the cell. Instead, use \"Clear Contents\" or just delete the contents of the desired cell."]
[]
["Instructions Relating to Answering Exam Questions"]
[14,"Enter answers in the white space below or to the right of the grey question box. Any cell content beyond Row 200 or Column AZ will NOT be graded."]
[15,"The answer should be concise and confined to the question as posed. When a specified number of items are requested, do not offer more items than requested.  For example, if you are requested to provide three items, only the first three responses will be graded."]
[16,"In order to receive full credit or to maximize partial credit on mathematical and computational questions, you must clearly outline your approach in either verbal or mathematical form, showing calculations where necessary.  It is not necessary to state the formula verbally if the calculation is made directly in the cell.  While Excel tools may be available to assist in calculations, candidates should ensure there is sufficient documentation of their work."]
[17,"Use of Excel functions (for example SUM, AVERAGE, SUMPRODUCT, etc.) is allowed and encouraged for efficiency but not required."]
[18,"You must clearly specify any additional assumptions you have made to answer the question."]
[19,"Only work shown on the question sheets will be graded; a copy of the sheets will be provided to the graders in Excel such that the graders can consider both the formula entered in a cell and the result of that formula. An optional \"Scratch\" sheet is available for candidates to use for side work. Any contents included on the Point Grid or the Scratch sheets will not be provided to the graders."]
[20,"DO NOT use named ranges as they may not copy over correctly to the graders."]
[21,"DO NOT use Visual Basic code.  It will not be provided to the graders."]
[22,"DO NOT use cell comments.  Content in cell comments will not be graded."]
[23,"DO NOT include links to other sheets; linked values in candidate answers will not carry over correctly to the grading files."]
[24,"Cell contents do not need to be printer-friendly. Text within a cell can extend beyond what can be seen on the screen. "]
[]
["Instructions Relating to Using the French Language Accessory Pack (if this is available in your version of Excel)"]
["To use the French Language options:"]
[null,"Click on \"File\""]
[null,"Click on \"Options\" from the left menu to access the \"Excel Options\" screen"]
[null,"Click \"Language\" from the left menu"]
[null,"Select the changes needed (see Options below)"]
[null,"Click OK"]
[null,"You will be directed to restart Office. Close the Excel file and reopen it. If the exam timer is in the way to close the file, you can move the exam timer by clicking on it and dragging it to the side."]
[null,"The modifications will take effect in the reopened file."]
["Options:"]
[null,"* To see the French version of Excel, select French under \"Display Language\" and click the \"Set as Default\" button below the selection box."]
[null,"* To see the French version of Help, select French under \"Help Language\" and click the \"Set as Default\" button below the selection box."]
[null,"* To answer questions in French, you must have contacted the CAS to request translation services or your French text will not be graded. With such authorization, you can change the Editing Language by selecting French under \"Editing Language\" and clicking the \"Set as Default\" button to the right of the selection box."]

{"sheet":"Scratch","index":3,"n_rows":1,"n_cols":1,"rows_kept":1,"cut":false,"hidden":false,"merged":[]}
["This tab will NOT be graded."]

{"sheet":"Point Grid","index":4,"n_rows":30,"n_cols":11,"rows_kept":30,"cut":false,"hidden":false,"merged":[[0,2,0,8]]}
[null,"Value of","Sub-Part of Question"]
["Question","Question","(a)","(b)","(c)","(d)","(e)","(f)","(g)","Question Status","Incomplete"]
[1,1.25,0.5,0.75,"","","","","",{"$f":"'1'!$B$1","v":"Incomplete"},"Finished"]
[2,1.75,0.5,0.5,0.25,0.5,"","","",{"$f":"'2'!$B$1","v":"Incomplete"},"Review"]
[3,2.25,2,0.25,"","","","","",{"$f":"'3'!$B$1","v":"Incomplete"}]
[4,2.75,1.25,1,0.5,"","","","",{"$f":"'4'!$B$1","v":"Incomplete"}]
[5,2.5,1,0.5,1,null,"","","",{"$f":"'5'!$B$1","v":"Incomplete"}]
[6,4.5,1,3.5,"","","","","",{"$f":"'6'!$B$1","v":"Incomplete"}]
[7,2,2,"","","","","","",{"$f":"'7'!$B$1","v":"Incomplete"}]
[8,2,2,"","","","","","",{"$f":"'8'!$B$1","v":"Incomplete"}]
[9,1.5,1,0.5,"","","","","",{"$f":"'9'!$B$1","v":"Incomplete"}]
[10,2,0.75,1.25,"","","","","",{"$f":"'10'!$B$1","v":"Incomplete"}]
[11,3.75,1.5,0.5,0.5,1.25,"","","",{"$f":"'11'!$B$1","v":"Incomplete"}]
[12,1.5,1,0.25,0.25,"","","","",{"$f":"'12'!$B$1","v":"Incomplete"}]
[13,1.5,1,0.5,null,"","","","",{"$f":"'13'!$B$1","v":"Incomplete"}]
[14,1,0.5,0.5,null,"","","","",{"$f":"'14'!$B$1","v":"Incomplete"}]
[15,2.25,0.75,0.75,0.75,"","","","",{"$f":"'15'!$B$1","v":"Incomplete"}]
[16,1.75,1,0.5,0.25,"","","","",{"$f":"'16'!$B$1","v":"Incomplete"}]
[17,2,2,"","","","","","",{"$f":"'17'!$B$1","v":"Incomplete"}]
[18,1.5,1.5,"","","","","","",{"$f":"'18'!$B$1","v":"Incomplete"}]
[19,2.25,1.5,0.5,0.25,"","","","",{"$f":"'19'!$B$1","v":"Incomplete"}]
[20,2,1.5,0.5,"","","","","",{"$f":"'20'!$B$1","v":"Incomplete"}]
[21,2.75,2.75,"","","","","","",{"$f":"'21'!$B$1","v":"Incomplete"}]
[22,2.75,1,1.5,0.25,"","","","",{"$f":"'22'!$B$1","v":"Incomplete"}]
[23,2.5,2.5,"","","","","","",{"$f":"'23'!$B$1","v":"Incomplete"}]
[24,2,0.75,0.75,0.5,"","","","",{"$f":"'24'!$B$1","v":"Incomplete"}]
[25,2.5,0.5,2,"","","","","",{"$f":"'25'!$B$1","v":"Incomplete"}]
[26,1.75,1.5,0.25,"","","","","",{"$f":"'26'!$B$1","v":"Incomplete"}]
[]
["Total",56.25]

{"sheet":"1","index":5,"n_rows":26,"n_cols":5,"rows_kept":26,"cut":false,"hidden":false,"merged":[]}
[1,"Incomplete"]
["Points"]
[1.25]
[null,"Given the following information on policy transactions:"]
[]
[null,"Policy","Transaction Date","Action","Full-Term Written Premium"]
[null,"A","2015-01-01","Policy Inception",100]
[null,"B","2015-02-01","Policy Inception",250]
[null,"B","2015-08-01","Endorsement",60]
[null,"B","2017-06-05","Audit Premium",50]
[null,"C","2015-05-01","Policy Inception",150]
[null,"C","2015-10-01","Cancellation",-150]
[null,"D","2014-09-01","Policy Inception",175]
[null,"D","2015-09-01","Policy Renewal",200]
[null,"D","2016-03-01","Endorsement",80]
[null,"E","2016-04-01","Policy Inception",75]
[]
[null,"•    Full-term written premium represents the policy premium if policy characteristics "]
[null,"     shown were in place from original effective date date until original expiration date."]
[null,"•    All policies are annual."]
[]
[0.5,"a."]
[null,"Calculate the in-force premium as of September 15, 2015."]
[]
[0.75,"b."]
[null,"Calculate the 2015 policy year written premium as of December 31, 2017."]

{"sheet":"2","index":6,"n_rows":28,"n_cols":7,"rows_kept":28,"cut":false,"hidden":false,"merged":[[6,1,8,1],[6,2,8,2],[6,3,8,3],[9,1,11,1],[9,2,11,2],[9,3,11,3]]}
[2,"Incomplete"]
["Points"]
[1.75]
[null,"Given the following payment and reserve information about two different claims on two different policies:"]
[]
[null,"Policy Number","Policy Effective Date","Accident Date","Transaction Date","Incremental Loss Payment ($)","Ending Case Reserve ($)"]
[null,"A","2016-01-01","2016-07-03","2016-07-05",0,2000]
[null,null,null,null,"2016-09-15",1000,3000]
[null,null,null,null,"2017-01-03",3500,0]
[null,"B","2016-10-01","2017-05-01","2017-05-01",500,5000]
[null,null,null,null,"2017-11-02",2500,3000]
[null,null,null,null,"2018-01-02",5000,0]
[]
[0.5,"a. "]
[null,"Calculate the incurred losses for each of the following calendar years: "]
[null,"i.  2016"]
[null,"ii. 2017"]
[]
[0.5,"b."]
[null,"Calculate the incurred losses for each of the following accident years evaluated as of December 31, 2017:"]
[null,"i.  2016"]
[null,"ii. 2017"]
[]
[0.25,"c."]
[null,"Calculate the incurred losses for policy year 2016 evaluated as of December 31, 2017."]
[]
[0.5,"d."]
[null,"Briefly descirbe one disadvantage and one advantage of using calendar year losses for ratemaking."]

{"sheet":"3","index":7,"n_rows":25,"n_cols":6,"rows_kept":25,"cut":false,"hidden":false,"merged":[]}
[3,"Incomplete"]
["Points"]
[2.25]
[null,"Given the following information evaluated as of December 31, 2017:"]
[]
[null,"Calendar / Accident Year","Earned Premium ($000)","On-Level Factor","Ultimate Ground-up Losses ($000s)","Ultimate Losses ($000s) Excess of $750,000"]
[null,2015,94824,0.98,81518,26000]
[null,2016,97230,1.01,54051,0]
[null,2017,94098,1.01,63412.999999999993,6393]
[]
[null,0.06,"Unlimited loss trend"]
[null,0.04,"Limited loss trend"]
[null,559996,"Ultimate trended ground-up losses for accident years 2008 - 2017 ($000s)"]
[null,45221,"Ultimate trended losses excess of $750,000 for accident years 2008 - 2017 ($000s)"]
[]
[null,"•    There is no premium trend."]
[null,"•    Policies are written on an annual basis."]
[null,"•    Rates are in effect for one year."]
[]
[2,"a. "]
[null,"Calculate the trended ultimate loss ratio for accident years 2015 to 2017 to be used to determine a rate change "]
[null,"effective July 1, 2018."]
[]
[0.25,"b."]
[null,"Briefly explain whether or not it is appropriate to use a large loss adjustment in this situation."]

{"sheet":"4","index":8,"n_rows":24,"n_cols":7,"rows_kept":24,"cut":false,"hidden":false,"merged":[[5,3,5,6]]}
[4,"Incomplete"]
["Points"]
[2.75]
[null,"Given the following exposure and loss data relevant to a line of property insurance:"]
[]
[null,"Accident","Earned","Cumulative Reported Claims ($) evaluated as of (months):"]
[null,"Year","Exposures",12,24,36,48]
[null,2014,898,363572,490822,564445,620890]
[null,2015,938,387362,522939,601380]
[null,2016,980,412801,557281]
[null,2017,1024,439961]
[]
[null,"•    Losses are fully developed at 48 months."]
[null,"•    All policies are annual."]
[]
[1.25,"a."]
[null,"Calculate the annual loss cost trend."]
[]
[1,"b."]
[null,"Calculate the projected loss cost per exposure for policies written between January 1, 2018 and December 31, 2018 given "]
[null,"a new legislative reform that will increase loss costs for claims reported on or after January 1, 2018 by 20%. "]
[]
[0.5,"c."]
[null,"Briefly descirbe two factors that drive loss cost trends."]

{"sheet":"5","index":9,"n_rows":34,"n_cols":9,"rows_kept":34,"cut":false,"hidden":false,"merged":[[5,1,5,8],[11,1,11,3]]}
[5,"Incomplete"]
["Points"]
[2.5]
[null,"Given the following:"]
[]
[null,"Countrywide"]
[null,"Calendar Year","Policy Count","Written Premium ($000)","Earned Premium ($000)","Commission & Brokerage ($000)","Other Acquisition ($000)","Taxes, Licenses, & Fees ($000)","General Expense ($000)"]
[null,2015,135000,98000,97000,6860.0000000000009,5880,3920,7840]
[null,2016,138000,100000,99000,7000.0000000000009,6300,3900,8007]
[null,2017,141000,102500,101250,7175.0000000000009,6253,4203,8212]
[]
[null,"State A"]
[null,725,"Average Premium"]
[null,6.2E-2,"Average Taxes, Licenses & Fees "]
[null,7.0000000000000007E-2,"Average Commission & Brokerage"]
[null,0.67200000000000004,"Selected Projected Loss + ALAE Ratio"]
[]
[null,3.5000000000000003E-2,"Profit Provision"]
[null,0.06,"ULAE Provision (of Loss + ALAE)"]
[]
[null,"•    All policies are annual."]
[null,"•    Proposed effective date of rates is January 1, 2019."]
[null,"•    Rates are in effect for one year."]
[]
[1,"a. "]
[null,"Calculate the underwriting expense provision for State A using the all variable expense method."]
[]
[0.5,"b."]
[null,"Calculate the fixed and variable underwiting expense provisions for State A using the premium-based projection method, given the following:"]
[null,"•    75% of Other Acquisition expenses are fixed."]
[null,"•    75% of General Expenses are fixed."]
[]
[1,"c."]
[null,"Calculate the indicated rate change using the loss ratio method. Include a brief justification for the selected underwriting expenses."]

{"sheet":"6","index":10,"n_rows":40,"n_cols":5,"rows_kept":40,"cut":false,"hidden":false,"merged":[]}
[6,"Incomplete"]
["Points"]
[4.5]
[null,"Given the following as of December 31, 2017:"]
[]
[null,"Rate Change History"]
[null,"Effective Date","Change"]
[null,"2016-07-01",0.08]
[null,"2017-07-01",0.05]
[]
[null,"Calendar Year",2015,2016,2017]
[null,"Earned Premium",2500000,3100000,2100000]
[]
[null,"Cumulative Paid Loss + ALAE ($) as of (months)"]
[null,"Accident Year",12,24,36]
[null,2015,1000000,1500000,1724999.9999999998]
[null,2016,1100000,1650000]
[null,2017,900000]
[]
[null,0.05,"Annual loss and ALAE trend"]
[null,0.02,"Annual premium trend"]
[null,0.06,"Fixed expense ratio"]
[null,0.2,"Variable expense ratio"]
[null,0.65,"Expected Loss & ALAE Ratio"]
[null,0.04,"ULAE provision (% of loss and ALAE)"]
[null,7.0000000000000007E-2,"Indicated rate change for policies effective July 1, 2018"]
[null,null,"using the last three accident years of experience"]
[]
[null,"•    All policies are annual."]
[null,"•    Exposures are written evenly throughout each calendar year."]
[null,"•    There is no development beyond 36 months."]
[null,"•    Rates are to be in effect for one year."]
[null,"•    The historical experience is fully credible."]
[]
[1,"a. "]
[null,"Calculate the ultimate loss & ALAE for each accident year using the paid Bornhuetter-Ferguson technique."]
[]
[3.5,"b."]
[null,"Determine the profit and contingencies provision used to calculate the indicated rate change "]
[null,"for policies effective July 1, 2018 using the ultimate loss & ALAE calculated in part a. above."]

{"sheet":"7","index":11,"n_rows":8,"n_cols":2,"rows_kept":8,"cut":false,"hidden":false,"merged":[]}
[7,"Incomplete"]
["Points"]
[2]
[null,"An insurance company has determined that average commute time to work is a predictive"]
[null,"rating variable in their risk classification system for personal automobile coverage, based on statistical criteria."]
[]
[null,"Evaluate whether this variable should be included in rating based on four other criteria for evaluating "]
[null,"rating variables."]

{"sheet":"8","index":12,"n_rows":21,"n_cols":14,"rows_kept":21,"cut":false,"hidden":false,"merged":[]}
[8,"Incomplete"]
["Points"]
[2]
[null,"An insurer is revising its class factors as part of their annual commercial general liability filing in a state."]
[null,"The actuary has calculated the indicated rate change for each class using the loss ratio method and the following information as of December 31, 2017:"]
[]
[null,null,"CY 2015-2017",null,"Premium at","AY 2015-2017","AY 2015-2017"]
[null,null,"Collected","On-Level ","Current Rate","Reported Loss","Reported Loss","Indicated","Current","Indicated","Indicated Rel","Selected Rel","Relativity","Change with "]
[null,"Class","Premium","Factors","Level","and ALAE"," and ALAE Ratio","Change","Relativity","Relativity","@ Base Class","@ Base Class","Change","Off Balance"]
[null,"A",1212729,1.0369999999999999,1257600,505300,0.40200000000000002,-0.35899999999999999,1.5,0.96,1.93,1.93,0.28699999999999998,-3.5000000000000003E-2]
[null,"B",995661,1.0369999999999999,1032500,1134500,1.099,0.752,1.25,2.19,4.4000000000000004,2,0.6,0.19900000000000001]
[null,"C",622179,1.0369999999999999,645200,201400,0.312,-0.502,1,0.5,1,1,0,-0.25]
[null,"Total",2830569,1.0369999999999999,2935300,1841200,0.627,0,null,null,null,null,0.33400000000000002,0]
[]
[null,"•    The company rates on class and territory only."]
[null,"•    Class and territory factors have been revised every year."]
[null,"•    The overall rate level is adequate."]
[null,"•    Premium trend is 0%."]
[null,"•    On-level factors reflect the overall historical rate changes for the state."]
[]
[null,"Discuss four potential shortcomings in this analysis. "]

{"sheet":"9","index":13,"n_rows":24,"n_cols":6,"rows_kept":24,"cut":false,"hidden":false,"merged":[]}
[9,"Incomplete"]
["Points"]
[1.5]
[null,"Given the following exposures and losses for states A, B and C:"]
[]
[null,"State","Class","Exposure","Losses ","Pure Premium"]
[null,"A",1,200,7000,35]
[null,null,2,225,12000,53.33]
[null,null,"Subtotal",425,19000,44.71]
[null,"B",1,250,10000,40]
[null,null,2,300,17000,56.67]
[null,null,"Subtotal",550,27000,49.09]
[null,"C",1,300,14000,46.67]
[null,null,2,350,20000,57.14]
[null,null,"Subtotal",650,34000,52.31]
[null,"All",1,750,31000,41.33]
[null,null,2,875,49000,56]
[null,null,"Total",1625,80000,49.23]
[]
[1,"a."]
[null,"Calculate the complement of credibility for state A, class 1 using Harwayne's method."]
[]
[0.5,"b.  "]
[null,"Evaluate an alternative complement of credibility for this company."]

{"sheet":"10","index":14,"n_rows":18,"n_cols":7,"rows_kept":18,"cut":false,"hidden":false,"merged":[]}
[10,"Incomplete"]
["Points"]
[2]
[null,"Given the following censored loss data:"]
[]
[null,null,null,"Policy Limit $100,000",null,"Policy Limit $250,000"]
[null,"Size of Loss",null,"Claims","Losses ($000s)","Claims","Losses ($000s)"]
[null,"X <= $50,000",null,600,21522,700,27468]
[null,"$50,000 < X <= $100,000",null,550,46200,500,39900]
[null,"$100,000 < X <= $250,000",null,null,null,200,35620]
[]
[null,50000,"Basic Limit"]
[]
[0.75,"a. "]
[null,"Calculate the increased limits factor for a limit of $100,000."]
[]
[1.25,"b."]
[null,"Calculate the increased limits factor for a limit of $250,000."]

{"sheet":"11","index":15,"n_rows":36,"n_cols":8,"rows_kept":36,"cut":false,"hidden":false,"merged":[]}
[11,"Incomplete"]
["Points"]
[3.75]
[null,"Given the following information:"]
[]
[null,"Accident Year / Calendar Year","Written Premiums ($000s)","Earned Premiums ($000s)","Projected Ultimate Claims ($000s)","General Expenses ($000s)","Commission, Brokerage, and Other Acquisition Expenses ($000s)","Taxes, Licenses, and Fees ($000s)"]
[null,2014,49000,43000,39000,3250,4200,350]
[null,2015,48000,50000,43000,2750,2000,290]
[null,2016,51500,49000,47000,1900,1750,200]
[]
[null,"Territory","In-force Premium ($000s)","Current Relativity","Loss Ratio","Claim Count"]
[null,"A",32000,1,0.87,930]
[null,"B",14000,1.22,1.05,450]
[null,"C",8000,1.35,0.68,78]
[]
[null,24000,"Exposures required for full credibility standard"]
[null,0.03,"Expected frequency per exposure"]
[null,3.5000000000000003E-2,"Target underwriting profit provision"]
[null,1000,"One time commission included in 2014 expense data ($000)"]
[]
[null,"•    All expenses are variable."]
[null,"•    There have been no rate changes in the past 5 years."]
[null,"•    There are no premium or expense trends."]
[null,"•    Territory A remains the base territory."]
[]
[1.5,"a. "]
[null,"Calculate the permissible loss ratio. Briefly justify the selected expense ratio."]
[]
[0.5,"b."]
[null,"Calculate the indicated overall rate change."]
[]
[0.5,"c."]
[null,"Calculate the credibility factor for each territory using the classical credibility approach."]
[]
[1.25,"d."]
[null,"Calculate the indicated change to the base territory after revising the territory relativities and overall rate level."]

{"sheet":"12","index":16,"n_rows":43,"n_cols":3,"rows_kept":43,"cut":false,"hidden":false,"merged":[]}
[12,"Incomplete"]
["Points"]
[1.5]
[null,"Given the following:"]
[]
[null,500000,"Property value"]
[null,350000,"Insured value"]
[null,0.8,"Coinsurance requirement"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[1,"a."]
[null,"Calculate the loss amount and coinsurance penalty at point X on the coinsurance penalty chart."]
[]
[0.25,"b."]
[null,"Calculate the loss amount at point Y on the coinsurance penalty chart."]
[]
[0.5,"c."]
[null,"Describe the consequence for an insured at loss amounts greater than Y."]

{"sheet":"13","index":17,"n_rows":21,"n_cols":3,"rows_kept":21,"cut":false,"hidden":false,"merged":[]}
[13,"Incomplete"]
["Points"]
[1.5]
[null,"Given the following information:"]
[]
[null,1000,"Projected Fixed Expenses ($000)"]
[null,7000,"Projected Losses ($000)"]
[null,2000,"Projected LAE ($000)"]
[null,40,"Projected Exposures (000)"]
[null,1.5,"Expected Exposures per Policy"]
[null,0.15,"Variable Expense Ratio"]
[null,0.05,"Target Underwriting Profit %"]
[]
[null,"•    The company charges a fixed expense fee per policy written."]
[]
[1,"a. "]
[null,"Calculate the indicated premium for a policy with four exposures."]
[]
[0.5,"b."]
[null,"Describe a scenario where the company would prefer the pure premium"]
[null,"method to the loss ratio method."]

{"sheet":"14","index":18,"n_rows":18,"n_cols":2,"rows_kept":18,"cut":false,"hidden":false,"merged":[]}
[14,"Incomplete"]
["Points"]
[1]
[null,"Company A and Company B have recently merged."]
[]
[null,"Before the merger:"]
[null,"•    Both companies are monoline homeowners' insurance carriers."]
[null,"•    Both companies use the reported claim development technique to estimate ultimate claims."]
[]
[null,"After the merger:"]
[null,"•    The actuary performing the reserve review has combined the claims data for the two companies."]
[null,"•    The actuary is estimating ultimate claims using the reported claim development technique."]
[]
[0.5,"a. "]
[null,"Briefly describe two arguments for approach taken after the merger."]
[]
[0.5,"b."]
[null,"Briefly describe two potential deficiencies of the approach taken after the merger."]

{"sheet":"15","index":19,"n_rows":31,"n_cols":7,"rows_kept":31,"cut":false,"hidden":false,"merged":[[5,1,6,1],[5,2,6,2],[5,3,6,3],[5,4,6,4],[7,1,9,1],[7,2,9,2],[7,3,9,3],[18,1,19,1],[18,2,19,2],[18,3,19,3],[11,1,14,1],[11,2,14,2],[11,3,14,3],[16,1,17,1],[16,2,17,2],[16,3,17,3]]}
[15,"Incomplete"]
["Points"]
[2.25]
[null,"Given the following information:"]
[]
[null,"Claim","Accident Date","Report Date","Evaluation Date","Outstanding ","Cumulative"]
[null,null,null,null,null,"Case Reserve","Paid Claims"]
[null,1,"2015-01-01","2015-07-01","2015-12-31",500,600]
[null,null,null,null,"2016-12-31",400,900]
[null,null,null,null,"2017-12-31",200,1500]
[null,2,"2016-08-01","2017-02-03","2017-12-31",700,400]
[null,3,"2015-05-16","2015-09-30","2015-12-31",2500,300]
[null,null,null,null,"2016-06-30",2500,900]
[null,null,null,null,"2016-12-31",1500,2500]
[null,null,null,null,"2017-12-31",2000,4000]
[null,4,"2017-04-01","2017-04-01","2017-12-31",4500,500]
[null,5,"2016-08-04","2016-09-01","2016-12-31",2000,5000]
[null,null,null,null,"2017-12-31",1500,8000]
[null,6,"2015-09-01","2015-09-05","2015-09-30",5000,0]
[null,null,null,null,"2015-12-31",0,100]
[]
[null,1.1000000000000001,"36-to-ultimate reported claim development factor"]
[]
[0.75,"a. "]
[null,"Construct the annual paid claim development triangle for accident years 2015 through 2017."]
[]
[0.75,"b."]
[null,"Construct the annual reported claim development triangle for accident years 2015 through 2017."]
[]
[0.75,"c."]
[null,"Estimate ultimate claims for accident year 2017 using the reported claim development technique."]

{"sheet":"16","index":20,"n_rows":27,"n_cols":7,"rows_kept":27,"cut":false,"hidden":false,"merged":[]}
[16,"Incomplete"]
["Points"]
[1.75]
[null,"Given the following information:"]
[]
[null,"Reported Claims ($000) as of (months)"]
[null,"Accident Year",12,24,36,48,60]
[null,2013,2400,4800,7200,8640,8640]
[null,2014,2500,5000,7500,9000]
[null,2015,3025,6050,9075]
[null,2016,2750,5500]
[null,2017,9000]
[]
[null,"•    There is only one large loss in the historical data, which occurred in 2017 and was"]
[null,"      reported in the first 12 months."]
[null,"•    There is no development beyond 60 months."]
[]
[1,"a. "]
[null,"Calculate the IBNR for each accident year using the reported claim development technique."]
[]
[0.5,"b."]
[null,"Explain whether the technique used in part a. above is appropriate to estimate IBNR for"]
[null,"accident year 2017 for this company."]
[]
[0.25,"c."]
[null,"Briefly describe a situation where the claims development techniques work well for projecting"]
[null,"ultimate claims."]

{"sheet":"17","index":21,"n_rows":25,"n_cols":12,"rows_kept":25,"cut":false,"hidden":false,"merged":[]}
[17,"Incomplete"]
["Points"]
[2]
[null,"An insurer has the following data evaluated as of December 31, 2017:"]
[]
[null,"Accident","Cumulative Closed Claim Counts as of (months)",null,null,null,null,"Accident","Incremental Paid Severities as of (months)"]
[null,"Year",12,24,36,48,null,"Year",12,24,36,48]
[null,2014,170,184,190,196,null,2014,7500,12800,18000,25000]
[null,2015,175,186,194,null,null,2015,7250,13000,18500]
[null,2016,178,190,null,null,null,2016,7700,13450]
[null,2017,185,null,null,null,null,2017,7950]
[]
[null,"Accident","Ultimate"]
[null,"Year","Claim Counts"]
[null,2014,196]
[null,2015,195]
[null,2016,198]
[null,2017,200]
[]
[null,0.03,"Claim severity trend"]
[]
[null,"•    There are no partial payments."]
[null,"•    There is no development beyond 48 months."]
[]
[null,"Estimate unpaid claims for accident year 2017 using a frequency-severity technique."]

{"sheet":"18","index":22,"n_rows":21,"n_cols":6,"rows_kept":21,"cut":false,"hidden":false,"merged":[]}
[18,"Incomplete"]
["Points"]
[1.5]
[null,"Given the following:"]
[]
[null,null,"Cumulative Reported Claims ($) as of (months)"]
[null,"Accident Year",12,24,36,48]
[null,2014,750,2550,5300,8200]
[null,2015,850,3200,6700]
[null,2016,1000,3500]
[null,2017,1200]
[]
[null,"Calendar Year","On-Level Earned Premium"]
[null,2014,23000]
[null,2015,27000]
[null,2016,31500]
[null,2017,38250]
[]
[null,1.4470000000000001,"48-to-ultimate reported development factor"]
[]
[null,"Calculate IBNR for accident year 2017 using the Cape Cod technique. "]

{"sheet":"19","index":23,"n_rows":33,"n_cols":4,"rows_kept":33,"cut":false,"hidden":false,"merged":[]}
[19,"Incomplete"]
["Points"]
[2.25]
[null,"Given the following information:"]
[]
[null,"Calendar","Accident","Incremental"]
[null,"Year","Year","Reported Claims"]
[null,2014,2014,950]
[null,2015,2014,2150]
[null,2015,2015,1100]
[null,2016,2014,700]
[null,2016,2015,2400]
[null,2016,2016,900]
[null,2017,2014,700]
[null,2017,2015,1200]
[null,2017,2016,1900]
[null,2017,2017,700]
[]
[null,1.03,"48-to-ultimate development factor"]
[]
[1.5,"a. "]
[null,"Calculate the company's accident year 2017 ultimate claims using"]
[null,"the reported claim development technique."]
[]
[0.5,"b."]
[null,"Describe how the estimate calculated in part a. may be distorted"]
[null,"if the average policy effective date changed from July 1 to April 1"]
[null,"in 2017."]
[]
[0.25,"c."]
[null,"Briefly describe an adjustment to the reported claim development"]
[null,"technique that could improve the estimate in part a. above after"]
[null,"the change in average effecctive date described in part b. above"]

{"sheet":"20","index":24,"n_rows":28,"n_cols":14,"rows_kept":28,"cut":false,"hidden":false,"merged":[]}
[20,"Incomplete"]
["Points"]
[2]
[null,"Given the following information for the company:"]
[]
[null,"Accident","Cumulative Paid Loss + ALAE ($000) as of (months)",null,null,null,null,null,"Accident","Cumulative Reported Loss + ALAE ($000) as of (months)"]
[null,"Year",12,24,36,48,60,null,"Year",12,24,36,48,60]
[null,2013,100,550,650,670,690,null,2013,400,600,675,675,700]
[null,2014,180,800,850,860,null,null,2014,500,850,871.2,872.94240000000002]
[null,2015,270,980,1050,null,null,null,2015,570,1026,1100]
[null,2016,300,800,null,null,null,null,2016,650,900]
[null,2017,300,null,null,null,null,null,2017,800]
[]
[null,"Accident","Cumulative Closed Claim Counts as of (months)",null,null,null,null,null,"Accident","Cumulative Reported Claim Counts as of (months)"]
[null,"Year",12,24,36,48,60,null,"Year",12,24,36,48,60]
[null,2013,720,1215,1330,1421,1465,null,2013,1200,1350,1400,1450,1470]
[null,2014,755,1242,1349,1431,null,null,2014,1258,1380,1420,1440]
[null,2015,750,1233,1330,null,null,null,2015,1250,1370,1350]
[null,2016,780,1215,null,null,null,null,2016,1300,1290]
[null,2017,810,null,null,null,null,null,2017,1170]
[]
[1.5,"a."]
[null,"Discuss the appropriateness of the following techniques for estimating ultimate claims for accident year 2017:"]
[null,"i. Reported development technique."]
[null,"ii. Paid development technique."]
[]
[0.5,"b."]
[null,"Identify two questions to ask the claims department to better understand any operational changes based on the data above."]

{"sheet":"21","index":25,"n_rows":39,"n_cols":6,"rows_kept":39,"cut":false,"hidden":false,"merged":[]}
[21,"Incomplete"]
["Points"]
[2.75]
[null,"Given the following information:"]
[]
[null,"Accident","Cumulative Closed Claim Counts as of (months)"]
[null,"Year",12,24,36,48]
[null,2014,13,36,61,78]
[null,2015,12,34,69]
[null,2016,13,38]
[null,2017,18]
[]
[null,"Accident","Cumulative Paid Claims ($) as of (months)"]
[null,"Year",12,24,36,48]
[null,2014,820,2050,3280,4100]
[null,2015,780,1950,3120]
[null,2016,760,1900]
[null,2017,810]
[]
[null,"Accident","Parameter a for Two-Point Exponential Fit"]
[null,"Year",12,24,36,48]
[null,2014,null,489,1042,1473]
[null,2015,null,473,1235]
[null,2016,null,472]
[]
[null,"Accident","Parameter b for Two-Point Exponential Fit"]
[null,"Year",12,24,36,48]
[null,2014,null,4.0599999999999997E-2,1.9E-2,1.32E-2]
[null,2015,null,4.2500000000000003E-2,1.35E-2]
[null,2016,null,3.73E-2]
[]
[null,4100,"Accident year 2014 ultimate claims"]
[]
[null,"•    The relationship between the adjusted cumulative closed claims (\"X\") and "]
[null,"      the adjusted cumulative paid claims (\"Y\") is: Y = a*e^(bX)"]
[]
[null,"Calculate the ultimate claims estimate for accident year 2017 using a "]
[null,"Berquist-Sherman technique, where paid claims are adjusted using a two-point"]
[null,"exponential fit."]

{"sheet":"22","index":26,"n_rows":36,"n_cols":6,"rows_kept":36,"cut":false,"hidden":false,"merged":[]}
[22,"Incomplete"]
["Points"]
[2.75]
[null,"Given the following information as of December 31, 2017:"]
[]
[null,null,"Cumulative Paid Claims Gross of Salvage and"]
[null,"Accident","Subrogation ($000) as of (months)"]
[null,"Year",12,24,36,48]
[null,2014,300,650,785,785]
[null,2015,200,605,700]
[null,2016,205,330]
[null,2017,150]
[]
[null,null,"Cumulative Received Salvage and Subrogation"]
[null,"Accident"," ($000) as of (months)"]
[null,"Year",12,24,36,48]
[null,2014,30,110,156,156]
[null,2015,21,103,141]
[null,2016,20,56]
[null,2017,15]
[]
[null,450000,"Ultimate claims gross of salvage and subrogation for accident year 2017"]
[]
[null,"•    There is no development beyond 48 months."]
[null,"•    A simple all-year average is used for all development factors."]
[]
[1,"a. "]
[null,"Estimate the salvage and subrogation recoverable for accident year 2017 using the development"]
[null,"technique."]
[]
[1.5,"b."]
[null,"Estimate the salvage and subrogation recoverable for accident year 2017 using a ratio approach."]
[]
[0.25,"c."]
[null,"Briefly describe a reason why a ratio approach is preferred over the development technique when"]
[null,"estimating salvage and subrogation recoverables."]

{"sheet":"23","index":27,"n_rows":27,"n_cols":7,"rows_kept":27,"cut":false,"hidden":false,"merged":[]}
[23,"Incomplete"]
["Points"]
[2.5]
[null,"Given the following information as of December 31, 2017:"]
[]
[null,null,null,null,null,"Reported","Closed"]
[null,null,"Ultimate",null,null,"Claim","Claim"]
[null,"Accident","Claim",null,null,"Count %","Count %"]
[null,"Year","Counts",null,"Age","of Ultimate","of Ultimate"]
[null,2014,43300,null,12,0.3,0.05]
[null,2015,41300,null,24,0.65,0.35]
[null,2016,46400,null,36,1,0.9]
[null,2017,45800,null,48,1,1]
[]
[]
[null,"Accident","Pending Claim Counts as of (months)"]
[null,"Year",12,24,36,48]
[null,2014]
[null,2015,null,null,null,0]
[null,2016,null,null,4639.9999999999991,0]
[null,2017,null,13740.000000000002,4579.9999999999991,0]
[]
[null,60000,"Average claim staff employee salary during calendar year 2017"]
[null,0.03,"Annual salary inflation"]
[null,310,"Opened, closed, or pending claim counts processed per employee per year"]
[]
[null,"Estimate the unpaid ULAE using the Mango-Allen claim staffing technique."]

{"sheet":"24","index":28,"n_rows":26,"n_cols":8,"rows_kept":26,"cut":false,"hidden":false,"merged":[]}
[24,"Incomplete"]
["Points"]
[2]
[null,"Given the following information as of December 31, 2017:"]
[]
[null,null,null,null,null,null,null,"Selected"]
[null,"Accident","Cumulative Paid ALAE ($) as of (months)",null,null,null,null,"Ultimate"]
[null,"Year",12,24,36,48,60,"Claims ($)"]
[null,2013,420,1983,2975,3571,3750,38000]
[null,2014,417,2220,3333,4000,null,43000]
[null,2015,477,2336,3500,null,null,45000]
[null,2016,494,2500,null,null,null,48000]
[null,2017,1250,null,null,null,null,50000]
[]
[null,1.0149999999999999,"60-to-ultimate development factor"]
[null,0.1,"Expected paid ALAE-to-paid claim ratio"]
[]
[0.75,"a. "]
[null,"Estimate accident year 2017 ultimate ALAE using the paid development technique."]
[]
[0.75,"b."]
[null,"Estimate accident year 2017 ultimate ALAE using the Bornhuetter-Ferguson technique."]
[]
[0.5,"c."]
[null,"Recommend and briefly justify an estimate of ultimate ALAE from the results of parts a."]
[null,"and b. above."]

{"sheet":"25","index":29,"n_rows":27,"n_cols":7,"rows_kept":27,"cut":false,"hidden":false,"merged":[[5,2,5,6]]}
[25,"Incomplete"]
["Points"]
[2.5]
[null,"Given the following data valued as of December 31, 2017:"]
[]
[null,null,"Ultimate Claims Ratio"]
[null,"Accident","Development",null,"Bornhuetter-Ferguson"]
[null,"Year","Paid","Reported","Paid","Reported","Expected"]
[null,2014,0.8,0.81,0.78,0.81,0.65]
[null,2015,0.81,0.83,0.77,0.81,0.65]
[null,2016,0.85,0.91,0.78,0.84,0.7]
[null,2017,0.91,1.01,0.75,0.85,0.7]
[]
[null,"•    The expected technique is derived from industry data."]
[null,"•    There are no large losses observed."]
[]
[0.5,"a."]
[null,"Briefly describe two possible changing conditions in the data above."]
[]
[2,"b."]
[null,"Briefly describe how the two changing conditions described in part a. above affect each of the"]
[null,"following techniques:"]
[]
[null,"i.    Expected claims"]
[null,"ii.    Paid Bornhuetter-Ferguson"]
[null,"iii.    Reported Cape Cod"]
[null,"iv.    Reported Benktander"]

{"sheet":"26","index":30,"n_rows":27,"n_cols":6,"rows_kept":27,"cut":false,"hidden":false,"merged":[]}
[26,"Incomplete"]
["Points"]
[1.75]
[null,"Given the following information:"]
[]
[null,null,"Cumulative Reported Claims ($000s)"]
[null,"Accident","Valued as of","Valued as of"]
[null,"Year","2016-12-31","2017-06-30"]
[null,2014,71000,73000]
[null,2015,62000,68000]
[null,2016,40000,48000]
[]
[null,null,"Selected Reported Claim Development Factors"]
[null,null,"12-Ult","24-Ult","36-Ult","48-Ult"]
[null,"Scenario 1",1.5,1.2,1.05,1]
[null,"Scenario 2",1.77,1.3,1.07,1]
[]
[null,"•    A linear relationship exists for the interim percentage reported between valuation dates."]
[null,"•    There is no development beyond 48 months."]
[]
[1.5,"a."]
[null,"Compare the actual versus expected claims reported between December 31, 2016 and June 30, 2017"]
[null,"for each accident year under each scenario."]
[]
[0.25,"b."]
[null,"Briefly justify which of the two reported claim development patterns shown above better reflects the"]
[null,"actual emergence of claims."]