北美精算師SOA歷年真題:November2004Course5
發布時間：2014-02-26 共8頁
39. X. Hazard I. Collision
Y. Peril II. Poor wiring
III. Dishonesty
40. X. Variable universal life products I. Passes full investment risk to the
policyholder
Y. Unitised-with-profit products II. Uses bid/offer spread as hidden
expense charge
III. Uses front-end loads to cover
acquisition costs
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Afternoon Session
COURSE 5
AFTERNOON SESSION
APPLICATION OF BASIC ACTUARIAL PRINCIPLES
SECTION A-WRITTEN ANSWER
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Afternoon Session
**BEGINNING OF EXAMINATION**
COURSE 5
AFTERNOON SESSION
Beginning With Question 9
9. (5 points) In Canada, describe the design of extended health plans in the group market.
10. (3 points) Describe the reasons why a plan sponsor would switch from a defined benefit
pension plan to a defined contribution pension plan.
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Afternoon Session
11. (5 points) You are pricing the latest version of a life insurance company’s flexible
premium universal life (UL) product.
With respect to the company, you are given the following:
Superior ratings from the major ratings agencies
Strong reputation in the estate planning market
Target market consists of affluent, sophisticated retirees
Average face amount on policies is significantly higher than the industry
average
UL sold for many years
New UL product is similar to its best-selling product
The new product has the following features:
Commissions:
First-year: 50% of first-year premium up to the target commissionable
premium, plus 3% of first-year premium in excess of the
target commissionable premium
Renewal: 3% of premium in policy year 2 onwards
Chargeback: 100% of first-year commissions for lapses in the first 3
policy years
Bonus refund: return of COI charges at the end of policy year 25
Surrender charges: 15% in policy year 1, grading linearly to 0% in policy year
16
(a) Describe how the information given above would influence your lapse
rate assumption.
(b) Describe the effect of the surrender charge on the investment risk and
the investment strategy for this product.
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Afternoon Session
12. (7 points) For a property and casualty insurance company, you are given the following:
Gross premium rates In effect for 6 months
Policy length 3 months
Trend factors Increase at an exponential rate
δ 0.133
Distribution of claims Uniform
Additional loadings:
Commissions 0.00
General Expenses 12.0%
Taxes 3.5%
Profit 4.0%
Incurred losses for reported claims by development year
Accident Year Development Year
0 1 2
2001 10,432,532 12,414,789 12,787,542
2002 12,503,672 15,248,731
2003 14,813,156
No further development beyond year two.
Accident Year
Earned Exposure Units
Number of Incurred
Claims
Credibility Factor
2001 106,454 5,569 0.0%
2002 107,127 5,603 40.0%
2003 107,962 5,691 60.0%
(a) (2 points) Calculate the expected ultimate incurred losses by accident year.
(b) (5 points) Calculate the gross premium rate that will take effect at May 1,
2004.
COURSE 5: Fall 2004 - 48 - STOP
Afternoon Session
13. (5 points) With respect to group health insurance:
(a) List the criteria that should be considered when underwriting large groups.
(b) Indicate why these criteria are important.
14. (5 points) Describe the considerations in group insurance financial reporting for:
(a) Alternative funding arrangements
(b) Administrative arrangements
15. (5 points) In the context of U.S. insurance company solvency regulation:
(a) Describe the role of State Guaranty Funds.
(b) Explain the effect of reinsurance regulation.
16. (5 points) With respect to group long term disability and group long term care insurance
contracts:
(a) Describe the features that are important when calculating claim reserves.
(b) Describe the considerations in preparing an actual to expected (A/E) claim
termination rate study.
(c) Describe the steps in calculating IBNR reserves by the loss ratio method.
**END OF EXAMINATION**
AFTERNOON SESSION
