HOW ACTUARIES SEE THE WORLD

ActuApardy!

Guidelines Answer questions individually or as a team Need a time keeper (or use your phone) Need a score keeper Click on bottom right corner to return to main board Always answer with a question At the end suggest improvements

LifeHealthRisk MGMT Property Casualty InvestmentStatistics

Life

Life - $100 Q: It is life insurance which provides coverage at a fixed rate of payments for a limited period of time, the relevant term. A: What is term life insurance or term assurance?

Life - $200 Q: A flexible premium policy that combines protection against premature death with a type of savings vehicle that typically earns a money market rate of interest. A: What is universal life insurance?

Life - $300 Q: The amount, before adjustments for factors such as policy loans, that the owner of a permanent life insurance policy is entitled to receive if the policy does not remain in force until the insured’s death. A: What is cash surrender value?

Life - $400 Q: A type of bond whose future coupons are based on the percentage of a stated population group who are still alive. A: What is a survivor bond?

Life - $500 Q: This risk due to the increasing life expectancy trends among policy holders and pensioners, and can result in payout levels that are higher than what a company or fund originally accounts for. A: What is longevity risk?

Health

Health - $100 Q: In the United States, it is a payment defined in the insurance policy and paid by the insured person each time a medical service is accessed. A: What is co-pay?

Health - $200 Q: The most you will have to pay for covered medical expenses in a plan year through deductible and coinsurance before your insurance plan begins to pay 100 percent of covered medical expenses. A: What is out-of-pocket maximum?

Health - $300 Q: Federal program for people 65 or older that pays part of the costs associated with hospitalization, surgery, doctors’ bills, home health care, and skilled-nursing care. A: What is Medicare?

Health - $400 Q: This is a type of health insurance plan that offers in-network as well as out-of-network coverage. However, out-of-network coverage is typically subject to either a higher deductible or lower co-insurance than in-network, often times both. No referrals are required in order to access care. A: What is Preferred Provider Organization?

Health - $500 Q: The rate at which sickness and injury occur within a defined group of people. A: What is the morbidity rate?

RISK MGMT

RISK MGMT - $100 Q: The possibility that a person may act dishonestly in an insurance transaction A: What is moral hazard?

RISK MGMT - $200 Q: The use of techniques other than traditional insurance and reinsurance to provide risk bearing entities with coverage or protection A: What is alternative risk transfer?

RISK MGMT - $300 Q: Insurance companies established with the specific objective of insuring risks emanating from their parent group or groups, but they sometimes also insure risks of the group's customers A: What are captive insurance companies?

RISK MGMT - $400 Q: Contract under which the ultimate liability of the reinsurer is capped and on which anticipated investment income is expressly acknowledged as an underwriting component A: What is finite risk reinsurance or financial reinsurance?

RISK MGMT - $500 Q: The risk that a borrower will default on any type of debt by failing to make required paymentsdefault A: What is credit risk?

Property Casualty

P&C - $100 Q: This type of insurance covers data breaches, corruption of data A: What is cyber liability?

P&C - $200 Q: In an insurance policy, it is the amount of losses/expenses that must be paid out of pocket before an insurer will cover any losses or expenses. A: What is a deductible?

P&C - $300 Q: It is the ratio of claim and expense to premium and shows an underwriting profit if the ratio is under 100% A: What is the combined ratio?

P&C - $400 Q: This type of insurance provides professional liability coverage for physicians, against suits alleging negligence or errors and omissions that have harmed clients A: What is medical malpractice insurance?

P&C - $500 Q: Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies. A: What is an umbrella policy?

Investments

Investments - $100 Q: This financial instrument represents a stream of payments indefinitely. A: What is a perpetuity?

Investments - $200 Q: It is a method for constructing a (zero- coupon) fixed-income yield curve from the prices of a set of coupon-bearing products, e.g. bonds and swaps. A: What is bootstrapping?

Investments - $300

Investments - $400 Q: Common examples of instruments created through this process include collateralized debt obligations (CDOs) and asset-backed securities (ABS). A: What are examples of structured assets, aka securitized assets?

Investments - $500 Q: A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates A: What is yield curve?

Statistics

Statistics - $100 Q: This statistic is a measure of the asymmetry of the probability distribution of a real-valued random variable about its mean. A: What is skewness?

Statistics - $200 Q: The ratio of σ to µ A: What is the coefficient of variation?

StATISTICS - $300 Q: This statistical measure σ(x,y) is a measure of how two variables change together A: What is the covariance?

Statistics - $400 Q: This theorem gives the relationship between P(A) and P(B) and P(B|A) and P(A|B) A: What is Bayes theorem?

Statistics - $500

Questions?

Suggestions For any suggestions or improvement requests, please contact either Alice Chambers – or Xiaoyan Anderson –

FIND OUT MORE… Follow us: