Difference between revisions of "ASOP12.RiskClass"
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:{| class='wikitable' | :{| class='wikitable' | ||
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| − | || '''risk(s)''': individuals or entities covered by financial or personal security systems | + | || '''risk(s)''': individuals or entities <u>covered</u> by financial or personal security systems |
|} | |} | ||
:{| class='wikitable' | :{| class='wikitable' | ||
|- | |- | ||
| − | || '''risk | + | || '''risk classification system''': a system for <u>assigning</u> risks to groups based on expected cost |
|} | |} | ||
:{| class='wikitable' | :{| class='wikitable' | ||
|- | |- | ||
| − | || '''risk | + | || '''risk characteristics''': measurable characteristics for <u>assigning</u> a risk to a risk class ''(within a risk classification system)'' |
|} | |} | ||
:{| class='wikitable' | :{| class='wikitable' | ||
|- | |- | ||
| − | || '''risk | + | || '''risk class''': a set of risks <u>grouped together</u> under a risk classification system |
|} | |} | ||
Revision as of 15:57, 14 July 2020
Reading: Actuarial Standard of Practice No. 12, Risk Classification
Contents
Pop Quiz
Study Tips
ASOPs generally have these sections:
- Section 1. Purpose, Scope, Cross References, and Effective Date
- Section 2. Definitions
- Section 3. Analysis of Issues and Recommended Practices
- Section 4. Communications and Disclosures
- Appendices
Sections 3 & 4 contain most of the relevant information. The definitions in Section 2 are usually obvious and familiar, and are covered in either the Werner of Friedland source texts anyway. You can skip Section 1 and the Appendices. The appendices usually contain either very general background information or comments on the draft version of the ASOP.
Estimated Study Time: 30 minutes (you may occasionally refer back to this ASOP while studying the main pricing and reserving material)
BattleTable
Based on past exams, the main things you need to know (in rough order of importance) are:
- fact A...
- fact B...
reference part (a) part (b) part (c) part (d) E (2016.Fall #10) considerations:
- for risk classification
In Plain English!
Section 2: Definitions
The 4 most important definitions (out of 10) in this ASOP are:
risk(s): individuals or entities covered by financial or personal security systems
risk classification system: a system for assigning risks to groups based on expected cost
risk characteristics: measurable characteristics for assigning a risk to a risk class (within a risk classification system)
risk class: a set of risks grouped together under a risk classification system
