Practice Exam 2 — BattleActs Exam 8 Forum

Q13

Lcparga1 — Mon, 08 Sep 2025 12:43:21 +0000

Hi there,

Wouldn't the loss elimination ratio for retrospective premiums be the excess ratio? And LDD plans would have the LER shown in the solutions?

Q11

xlto22 — Sat, 19 Oct 2024 15:09:42 +0000

Hi, for part c), will any credit be given for the stating that 'if one class plan does a better job of identifying VHM, while also adjusting and minimizing EPV, then that plan should assign higher credibility to the risk compared to the other'?

Q5

xlto22 — Sat, 19 Oct 2024 15:00:54 +0000

"Hi, regarding

part b) should the calculations in the solution stops at 9.1198 which I thought it's the "intercept term" asked in the question?

part c) will any credit be rewarded for stating "include the interaction term, and then assess p-value and std error ..."

part e) on 'full credibility of data,' would it be reasonable to argue in the direction of GLMM that there may be fewer electric vans, which could result in the predictor being not significant if there is a large number of cars or trucks?"

thank you in advance!

PE#2 #7

Ajshepar36 — Wed, 09 Oct 2024 19:00:41 +0000

Are the ILFs in the solution backwards? I agree that we always use the $100K base limit PO ILF row, but it seems like for 2022 we should use 1.630 to match the 500K agg limit for that year, and so on. Let me know if I am missing something here, thank you!

practice exam 2 - qs 19

Ayesha — Sat, 28 Sep 2024 22:45:21 +0000

answer to part c says:

"Franchise deductible will eliminate more small values nuisance claims than the straight deductible"

can you please explain why this is true?

Practice Exam 2 - Qs 10c

Ayesha — Sun, 22 Sep 2024 02:24:33 +0000

For part 10C, a bunch of audited premiums are provided. That's confusing. Don't we need payroll?