| SOA真题November2004Course5 |
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COURSE 5
MORNING SESSION
APPLICATION OF BASIC ACTUARIAL PRINCIPLES
SECTION A-WRITTEN ANSWER
COURSE 5: Fall 2004 - 2 - GO ON TO NEXT PAGE
Morning Session
**BEGINNING OF EXAMINATION**
COURSE 5
MORNING SESSION
1. (4 points)
(a) Describe the coverage in a business overhead expense disability income policy.
(b) You are given the following information:
Maximum monthly benefit 30,000
Maximum multiple of monthly benefit 15
Maximum benefit period 24 months
Insured start of disability January 1, 2003
Insured end of disability March 1, 2005
Elimination period 90 days
Calculate the payout to the insured for each of the scenarios:
Scenario Monthly Overhead Expense
I 36,000
II 18,000
III 22,500
Show all work.
2. (6 points) With respect to group health care benefits:
(a) Describe the various providers.
(b) Describe the various buyers.
COURSE 5: Fall 2004 - 3 - GO ON TO NEXT PAGE
Morning Session
3. (4 points)
(a) Describe the actions a life insurance company can take to limit the effect of
policyholder misrepresentation.
(b) Given the following information for a company that offers life insurance with
smoker and nonsmoker rates:
Actual smokers 30% of insured
Smokers premium rate 5 per 1,000
Non-smoker premium rate 3 per 1,000
Expenses None
Calculate the amount of profit lost per 1,000 if 10% of smokers lied about
smoking and were issued as non-smokers.
Show all work.
COURSE 5: Fall 2004 - 4 - GO ON TO NEXT PAGE
Morning Session
4. (6 points) For a defined benefit pension plan, you are given the following information:
Plan formula: 1% × 3-year Final Average Earnings × years of service from hire
Plan participants as of January 1, 2005:
Participant
Attained
Age
Prior
Year
Earnings
Service
to Date
Probability of
surviving in
service to age 65
Temporary
employment-based life
annuity of 1 per year
X 40 35,000 0 0.5040 11.8338
Y 50 50,000 10 0.6547 9.1844
Actuarial assumptions:
(12)
a%26#1048581;%26#1048581;65 9.4131
Interest rate 7%
Assumed future annual salary increases 5%
Pay increases Beginning of the year
Actuarial cost method Entry age normal
Normal retirement age 65
Benefits payable for termination prior to
normal retirement age
None
Calculate the plan’s normal cost and accrued liability as of January 1, 2005.
Show all work.
5. (3 points) For variable annuities:
(a) Describe common death benefit options.
(b) Describe the effect of a decline in account value due to investment performance
for each death benefit option.
COURSE 5: Fall 2004 - 5 - GO ON TO NEXT PAGE
Morning Session
6. (7 points) Describe the steps an insurance company takes to develop an individual life
insurance product.
7. (5 points) For a current medical plan and a proposed change to that plan, you are given
the following:
Deductible Coinsurance Out-of-pocket maximum
(excluding deductible)
Lifetime
maximum
Current Plan 100 80% 1,000 None
Proposed Plan 200 75% 1,400 None
Manual cumulative probability distribution
Range of Claims Frequency
Average
Annual
Claims
Annual
cost
Accumulated
Frequency
Accumulated
Annual Cost
0 0.25 0 0.00 1.00 3,500
0.01–50.00 0.05 40 2.00 0.75 3,500
50.01-150.00 0.10 100 10.00 0.70 3,498
150.01-250.00 0.20 210 42.00 0.60 3,488
…… …… …… …… …… ……
4,000.01-5,000.00 0.03 4,500 135.00 0.12 2,500
5,000.01-6,000.00 0.02 5,400 108.00 0.09 2,387
Assuming no change in utilization, calculate the percentage change on net medical claims
for the proposed plan change.
Show all work.
8. (5 points) Describe the types of insurance company risk that are typically addressed by
required capital formulas.
COURSE 5: Fall 2004 - 6 - GO ON TO NEXT PAGE
Morning Session
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COURSE 5: Fall 2004 - 7 - GO ON TO NEXT PAGE
Morning Session
COURSE 5
MORNING SESSION
APPLICATION OF BASIC ACTUARIAL PRINCIPLES
SECTION B-MULTIPLE CHOICE
COURSE 5: Fall 2004 - 8 - GO ON TO NEXT PAGE
Morning Session
1. Under Medicaid, all of the following services are mandatory EXCEPT:
(A) Prosthetic devices
(B) Lab and x-ray
(C) Vaccines for children
(D) Home health care
(E) Family planning
2. In the U.S., all of the following entities pay income taxes EXCEPT:
(A) Mutual funds
(B) Non-qualified trusts
(C) Common-law partnerships
(D) Legal partnerships
(E) Large corporations
COURSE 5: Fall 2004 - 9 - GO ON TO NEXT PAGE
Morning Session
3. With respect to market value adjustments, all of the following are true EXCEPT:
(A) Allows the company to reflect the market value of the liabilities when the policy
is surrendered
(B) Works in the policyowner’s favor when interest rates decline
(C) Adds equity and stability for the company
(D) Adds equity and stability for the policyholder
(E) Offsets the effect of adverse cash flows
4. For the traditional unit credit cost method, all of the following statements are true
EXCEPT:
(A) Would be used to determine plan termination liability
(B) Is a benefit allocation cost method
(C) Increase in accumulated plan benefit due to plan amendment increases normal
cost
(D) For a participant, the normal cost for a level benefit is likely to rise from year to
year
(E) Actuarial liability is equal to the actuarial value of the participant’s cumulative
benefit on the valuation date
COURSE 5: Fall 2004 - 10 - GO ON TO NEXT PAGE
Morning Session
5. All of the following are bases for insurance company taxes EXCEPT:
(A) Earnings
(B) Capital
(C) Premiums
(D) Reserves
(E) Investment income less expenses
COURSE 5: Fall 2004 - 11 - GO ON TO NEXT PAGE
Morning Session
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COURSE 5: Fall 2004 - 12 - GO ON TO NEXT PAGE
Morning Session
6. Each of questions 6 through 11 consist of an assertion in the left-hand column and a
reason in the right-hand column. Code your answer to each question by blackening
space:
(A) If both the assertion and the reason are true statements, and the reason is a correct
explanation of the assertion.
(B) If both the assertion and the reason are true statements, but the reason is NOT a
correct explanation of the assertion.
(C) If the assertion is a true statement, but the reason is a false statement.
(D) If the assertion is a false statement, but the reason is a true statement.
(E) If both the assertion and the reason are false statements.
6.
ASSERTION
Term to 100 is permanent
insurance.
BECAUSE
REASON
Term to 100 cash values are
similar to those of whole life
insurance.
7.
ASSERTION
The cost of a 31-day grace period
provision in an individual health
insurance policy is relatively
more than the cost of a similar
provision in an individual life
insurance policy.
BECAUSE
REASON
Modal premium loadings for
individual health insurance are
higher than those for individual
life insurance.
COURSE 5: Fall 2004 - 13 - GO ON TO NEXT PAGE
Morning Session
8.
ASSERTION
During the lifetime of the debtor,
group credit life insurance can be
very profitable to the debtor.
BECAUSE
REASON
Dividends payable under a group
credit life insurance policy are
paid to the debtor.
9.
ASSERTION
For small group health business,
many states have risk pooling
programs.
BECAUSE
REASON
For small group health business, it
is necessary to distribute
additional risks associated with the
guaranteed issue requirement.
10.
ASSERTION
In a life insurance company, there
is a strong tendency to favor
solvency earnings as the primary
driver of pricing.
BECAUSE
REASON
In a life insurance company,
solvency earnings drive
stockholder investments in the
business.
11.
ASSERTION
Under the individual aggregate
actuarial cost method, there is
never an unfunded actuarial
liability.
BECAUSE
REASON
Under the individual aggregate
actuarial cost method, at inception
of the plan, there is no actuarial
liability for past service.
COURSE 5: Fall 2004 - 14 - GO ON TO NEXT PAGE
Morning Session
12. Rank the following pricing strategies in ascending order (lowest to highest) of price:
I. Predatory pricing
II. Skim pricing
III. Neutral pricing
IV. Penetration pricing
(A)
I
<
IV
<
III
<
II
(B)
II
<
I
<
III
<
IV
(C)
II
<
III
<
IV
<
I
(D)
IV
<
I
<
II
<
III
(E)
IV
<
II
<
I
<
III
COURSE 5: Fall 2004 - 15 - GO ON TO NEXT PAGE
Morning Session
USE THIS PAGE FOR YOUR SCRATCH WORK
COURSE 5: Fall 2004 - 16 - GO ON TO NEXT PAGE
Morning Session
13. For a block of one-year term policies you are given:
Earned premium for 2004 3,401
Rate increase November 1, 2003 7%
Rate increase September 1, 2004 5%
Policies Uniformly distributed
Calculate the earned premium at current rates for 2004 using the parallelogram method.
(A) 3,458
(B) 3,561
(C) 3,564
(D) 3,644
(E) None of the above.
COURSE 5: Fall 2004 - 17 - GO ON TO NEXT PAGE
Morning Session
USE THIS PAGE FOR YOUR SCRATCH WORK
COURSE 5: Fall 2004 - 18 - GO ON TO NEXT PAGE
Morning Session
14. For a pension plan you are given the following:
Actuarial cost method: Trad[1] [2] [3] 下一页 |
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