GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Acts of God
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Combined Ratio
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Actual Loss Ratio
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Actuarial Cost Assumptions
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Detailed explanation-1: -To calculate the contribution rates necessary to pre-fund a plan’s benefits, an actuary uses an actuarial cost method, an asset valuation method, economic assumptions, and demographic assumptions.
Detailed explanation-2: -What Is Actuarial Risk? Actuarial risk refers to the risk that the assumptions actuaries implement into models used to price specific insurance policies may prove to be inaccurate or wrong. Possible assumptions include the frequency of losses, the severity of losses, and the correlation of losses between contracts.
Detailed explanation-3: -What Are Actuarial Assumptions? 2. Economic assumptions which are related to other factors such as future rates of investment return, inflation, payroll growth, and pay increases among individual plan participants.