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29 Cards in this Set
- Front
- Back
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Is positive homogeneity true for skewness? |
No it’s not true, so that property doesn’t hold |
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Is translation invariance true for skewness? |
No it’s not so that property doesn’t hold |
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What is the on level premium? |
The value of the premium after it has been brought to the current rate level using the most recent base rate and relativities |
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What 3 things can affect rates for homeowners insurance? |
1. Probability of natural disasters 2. Materials used to construct the home 3. Value of the home |
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Under inland marine insurance, what counts as personal property floater risks? |
Construction equipment, personal jewelry and furs, agricultural equipment, and animals |
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Under inland marine insurance, what counts as instrumentalities of transportation and communication |
Bridges, tunnels, etc |
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If you’re given one of the parameters for normal/lognormal, can use you the matching moments formula to find the other one? |
No you can’t. So if you use matching moments, you need to estimate both |
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Special cases: matching moments Gamma, fixed α |
θ=x/α |
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First property of Bayesian/Buhlmann graph |
Buhlmann estimates are on a straight line |
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Second property of Bayesian/Buhlmann graph |
Bayesian estimates are within the range of hypothetical means |
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Third property of Bayesian/Buhlmann graph |
There are Bayesian estimates above and below the Buhlmann line |
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Fourth property of Bayesian/Buhlmann graph |
Buhlmann estimates are between the sample mean and theoretical mean |
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d/dt[b^t]=? |
lnb• b^t |
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When a<0 for non-uniform exposures, what does the credibility factor Z equal? |
0 |
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Bernoulli Shortcut |
VarX= (a-b)^2•q•(1-q)
Where X=a with probability q and X=b with probability 1-q |
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True or False: you can do weighted averages with TVaR and VaR? |
False, you can’t do weighted averages |
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What do you find when you want to minimize the squared loss function? |
Posterior Mean |
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What do you find when you want to minimize the absolute loss function? |
The posterior median |
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What do you find when you want to minimize the Zero-one loss function? |
The Posterior Mode |
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An insurance policy pays for the portion of aggregate losses that exceed twice the expected value of X, how is this translated into math notation? |
E[(x-d)+] with d being twice the expected value of X |
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When you have inflation, should you include it as part of the ultimate insurance formula or just use as a scale factor and modify the distribution? |
Scale factor and modify the distribution |
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True or False? HSA’s are available for everyone |
True, HSA’s are available for everyone, even the self-employed |
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True or False: An insurer must have a HDHP (high deductible health plan) to be eligible for an HSA |
True, you need to be on a HDHP to qualify for an HSA |
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True or False: HSA contributions are made tax free? |
True, they are made tax free |
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Trie or False? If you have an Buhlmann credibility problem with inflation, you should always trend to the last year- the year you want to predict? |
True |
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True or False? With Bulhmann credibility problems with inflation, you have to trend u to the year you are predicting to? |
True, trend u to the year you wanna predict |
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The Cramer Rai Lower Bound is also known as what? |
Asymptotic Variance |
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With the phrase “Calculate the percent increase in the expected number of claims exceeding a 10,000 policy limit between 2009 and 2012”, what should you calculate? |
(Survival function in 2012)/(Survival function in 2009) |
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When finding the number of claims that will be closed in a development year, what’s the order you should go in when making rows? (The problem gives the selected claims closure rate for each development year) |
1.) Open claims 2.) Closure Rate 3.) Claims Closed |
