Aida 182 - Risk And Insurance Analysis Techniques |140 Questions| With Correct Answers.

strategic risk {Ans: Arise from trends in the economy and society, including changes in the economic, political, and competitive environments, as well as from demographic shifts (speculative risk)}empirical probability {Ans: A probability measure that is based on actual experience through historical data or from the observation of facts.}probability analysis {Ans: A technique for forecasting events, such as accidental and business losses, on the assumption that they are governed by an unchanging probability distribution.}failure mode {Ans: The manner in which a perceived or actual defect in an item, process, or design occurs.}expense provision {Ans: The amount that is included in an insurance rate to cover the insurer's expenses and that might include loss adjustment expenses but that excludes investment expenses}loss costs {Ans: The portion of the rate that covers projected claim payments and loss adjusting expenses.}