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Exam 5

Section 2: Loss Reserves and Loss Adjustment Expenses

Section 3: Underwriting Expenses, Insurance Company Profits, and the Fundamental Insurance Equation

Section 4: Ratemaking Principles, Frequency, Severity, and Pure Premium

Section 5: Average Premium, Loss Ratio, Loss Adjustment Expense Ratio, Underwriting Expense Ratio, and Operating Expense Ratio

Section 6: Combined Ratio, Retention Ratio, and Close Ratio

Section 7: Rules, Rates, and Rating Algorithms in Insurance Rating Manuals

Section 8: Underwriting Guidelines and Rating Manuals in Insurance

Section 9: A Fictional Rating Manual for Homeowners’ Insurance

Section 10: A Fictional Rating Manual for Medical Malpractice Insurance

Section 11: A Fictional Rating Manual for Workers’ Compensation Insurance

Section 12: Moral Hazard Versus Morale Hazard

Section 13: Ratemaking Data Types, Policy Databases, and Claims Databases

Section 14: Aggregation of Insurance Data

Section 15: Insurance Data Aggregation Methods and External Insurance Data

Section 16: The Use of Competitor Rate Filings and Third-Party Data by Insurance Companies and Criteria for Exposure Bases

Section 17: Exposure Bases, Methods of Aggregating Exposures, and In-Force Exposures

Section 18: Risk, Loss Exposures, and Hazards

Section 19: Competition in Property and Casualty Insurance Markets

Section 20: Basic Supply and Demand and Some Factors Affecting Insurance Supply

Section 21: Considerations Regarding Insurance Markets and Pooling of Risk

Section 22: Functions and Properties of Risk Pooling and Insurance

Section 23: Characteristics of Ideally Insurable Loss Exposures

Section 24: Net Income Loss Exposures and Personal Loss Exposures

Section 25: Basic Legal Concepts Relevant to Insurance

Section 26: Intentional Torts, Strict Liability, and Remedies for Torts

Section 27: Distinguishing Characteristics of Insurance Policies

Section 28: Exchange of Unequal Amounts, Conditionality, and Restrictions on Transfer in Insurance

Section 29: Common Insurance Policy Provisions

Section 30: Aggregation of Written, Earned, and In-Force Exposures for Insurance Policies of Unequal Terms and the “15th of the Month Rule”

Section 31: Adjustments to Historical Premium and Written Premium Aggregation for Calendar Years and Policy Years

Section 32: Aggregation of Earned Premium and In-Force Premium by Calendar Year and Policy Year

Section 33: Adjusting Historical Premium to Current Rate Levels: The Extension of Exposures Method and the Parallelogram Method

Section 34: Application of the Parallelogram Method for Adjusting Historical Premium to Current Rate Levels

Section 35: Policy-Year Calculations Using the Parallelogram Method

Section 36: Calculations Using the Parallelogram Method When Some Rate Changes Are Applied to Already Written Insurance Policies

Section 37: Premium Trends, Exposure Trends, One-Step Trending, and Two-Step Trending

Section 38: Analyzing Loss Data by Calendar Year, Accident Year, and Policy Year

Section 39: Catastrophe and Excess Losses

Section 40: Changes in Insurer Losses Due to Reinsurance and Changes in Coverage or Benefit Levels

Section 41: Calculations Pertaining to Workers’ Compensation Insurance Benefit Levels

Section 42: Analysis of Insurance Losses Using the Parallelogram Method and Age-to-Age Development Factors

Section 43: Loss Development, Age-to-Ultimate Development Factors, and Calculations of Loss Trends

Section 44: Calculations of Loss Trends in Insurance - Part 2

Section 45: Trends Pertaining to Total Limits Losses, Basic Limits Losses, and Excess Losses

Section 46: Comparisons of Various Types of Loss Trends in Insurance and Simple Methods of Estimating Unallocated Loss Adjustment Expenses

Section 47: Risk Management Steps, the Law of Large Numbers, Types of Insurers, and Insurance Functions

Section 48: Independent Agents and Brokers in Insurance

Section 49: Exclusive Agents, Direct Writers, Excess and Surplus Lines Brokers, Agency Premium Billing, and General Functions of Insurance Producers

Section 50: General Underwriting Purposes, Functions, and Information in Insurance

Section 51: General Insurance Underwriting Considerations and Procedures

Section 52: General Underwriting Purposes, Functions, and Information in Insurance - Part II

Section 53: Construction and Occupancy Considerations Pertaining to Fire Risk

Section 54: Occupancy Hazards, Fire Protection Classes, Fire Prevention, and Fire Detection

Section 55: Fire Sprinkler Systems and External Fire Loss Exposures

Section 56: Coinsurance Requirements in Property Insurance, and the Fire, Lightning, Explosion, and Windstorm Causes of Loss

Section 57: Losses Due to Hail, Vandalism, Earthquakes, Water, and Other Perils

Section 58: Concepts Pertaining to Legal Liability and Commercial Liability Insurance

Section 59: Personal and Advertising Injury Loss Exposures, Hold-Harmless Agreements, and Products Liability Loss Exposures

Section 60: Completed Operations Loss Exposures, Professional Liability Insurance, Personal Liability Insurance, and Laws Pertaining to Automobile Insurance

Section 61: Personal Automobile and Commercial Automobile Loss Exposures

Section 62: Underwriting Considerations Pertaining to Workers’ Compensation Insurance

Section 63: Basics of Insurance Claims and Property Claim Adjusting

Section 64: Indirect Losses to Property, Verification of Property Losses, Intentional Property Losses, Replacement Cost, and Actual Cash Value

Section 65: Replacement Cost, Actual Cash Value, Depreciation, Agreed Amounts, Stated Amounts, and Policyholder Duties in the Event of Insured Losses

Section 66: Waiver, Estoppel, Reservations of Rights, Salvage, and Subrogation in Insurance Claims

Section 67: Basics of Liability Claim Adjusting

Section 68: Coverage, Investigation, and Defenses for Liability Insurance Claims

Section 69: Damages and Settlements in Liability Insurance Claims

Section 70: Negotiations, Settlements, and Litigation for Liability Insurance Claims

Section 71: Stages of a Lawsuit, Legal Expense Controls, and Alternative Dispute Resolution

Section 72: Treatment of Expenses in Ratemaking and the All Variable Expense Method

Section 73: The Premium-Based Projection Method and the Exposure-Based Projection Method for Expenses in Insurance Ratemaking

Section 74: Trending of Fixed Expenses, Reinsurance Costs, and Treatment of Profit in Insurance Ratemaking

Section 75: The Pure Premium Method and the Loss Ratio Method in Insurance Ratemaking

Section 76: Criteria for Selecting Underwriting and Rating Variables in Insurance

Section 77: The Pure Premium Approach for Determining Relativities Pertaining to Specific Insurance Rating Variables

Section 78: The Loss Ratio Approach for Determining Relativities Pertaining to Specific Insurance Rating Variables

Section 79: The Adjusted Pure Premium Approach for Determining Relativities Pertaining to Specific Insurance Rating Variables

Section 80: The Minimum Bias Procedure for Two Rating Variables and Two Categories per Variable

Section 81: Multivariate Classification Ratemaking Methods and Basic Principles of Generalized Linear Models

Section 82: Basics of GLM Diagnostics, Validation, and Factor Analysis

Section 83: The Role of Data Mining Techniques and External Data in Enhancing Generalized Linear Models in Insurance

Section 84: Attributes of Territorial Ratemaking in Insurance

Section 85: Increased Limits Ratemaking for Single Limits With Uncensored Losses

Section 86: Increased Limits Ratemaking for Single Limits With Censored Losses

Section 87: Calculations of Increased Limit Factors Using Continuous Loss Distributions and Basic Calculations of Deductible Relativities and Loss Elimination Ratios

Section 88: Calculation of Loss Elimination Ratios Using Observed Data

Section 89: Calculations of Loss Elimination Ratios Using Continuous Loss Distributions and Considerations Pertaining to Expenses in Workers' Compensation Ratemaking

Section 90: Calculations Pertaining to Coinsurance Requirements and Penalties in Property Insurance

Section 91: Rate Calculations for Property Insurance and Considerations Pertaining to Insurance to Value

Section 92: Basics of Classical Credibility, Bühlmann Credibility, and Bayesian Analysis of Credibility

Section 93: Methods for Determining Complements of Credibility

Section 94: Methods for Finding Complements of Credibility: Harwayne's Method and the Use of Competitors' Rates

Section 95: Using Trended Present Rates in Finding the Complement of Credibility, Statistical Methods in Multivariate Classification Analysis, and the Challenges of Excess Insurance Ratemaking

Section 96: Finding Complements of Credibility in Excess Insurance Ratemaking Using Increased Limit Factors, Lower Limits Analysis, and Limits Analysis

Section 97: The Method of Fitted Curves for Finding the Complement of Credibility in Excess Insurance Ratemaking and Cost-Benefit Analysis for Changes in Insurance Rating Structures

Section 98: Formulas for Competitive Comparisons and Measurements of Performance for Insurers

G. Stolyarov II is an actuary, science fiction novelist, independent philosophical essayist, poet, amateur mathematician, composer, contributor to Enter Stage Right, Le Quebecois Libre, Rebirth of Reason, and the Ludwig von Mises Institute, Senior Writer for The Liberal Institute, former weekly columnist for GrasstopsUSA.com, and Editor-in-Chief of The Rational Argumentator, a magazine championing the principles of reason, rights, and progress. Mr. Stolyarov’s blog, The Progress of Liberty, offers a combination of commentary, multimedia presentations, educational materials, and suggestions for effective activism in favor of individual freedom. Mr. Stolyarov also publishes his articles on Helium.com and Associated Content to assist the spread of rational ideas. He holds the highest Clout Level (10) possible on Associated Content. Mr. Stolyarov has also written a science fiction novel, Eden against the Colossus, a non-fiction treatise, A Rational Cosmology, and a play, Implied Consent. You can watch his YouTube Videos. Mr. Stolyarov can be contacted at gennadystolyarovii@yahoo.com.

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