Aida 182 Exam 2024 -2025 Q & A

AIDA 182 EXAM 2024 What ratemaking data collection method is the least accurate? - ANSWER>>Calendar-year. When using prospective loss costs supplied by advisory organizations to produce rates, each insurer must apply its own what? - ANSWER>>Loss cost multiplier. When creating or revising insurance rates, an insurer's staff or an advisory organization on behalf of the insurer follows a series of steps. Generally the first step in this process is to what? - ANSWER>>Collect data. During which one of the following steps in the ratemaking data development process does an insurer review which areas in a state deserve higher or lower rates? - ANSWER>>Determine territorial and c lass relativities. True or false, exponential trending assumes data will increase by a fixed percentage. - ANSWER>>True As a key step in the process of developing insurance rates, actuaries adjust the premium and loss data that they have collected from past years. Which one of the following statements concerning this adjustment process is true? - ANSWER>>Loss development factors reflect growth in incurred reported losses and in IBNR. When an insurer is under-reserved, its surplus is what? - ANSWER>>Overstated. Incurred losses = - ANSWER>>Paid losses + loss reserves + loss adjustment expense reserves What is