Preview Questions Actuary | Role Specific Skill

Question 1: What is the significance of "funded status" in the context of pension plans?

Which action should you take?

Choose only one option

It determines the eligibility criteria for pension benefits

It indicates the ratio of total assets to total liabilities of the pension plan

It represents the number of participants in the pension plan

It measures the investment performance of the pension fund

Question 2: Under Solvency II, how is the Solvency Capital Requirement (SCR) calculated for an insurance company?

Which action should you take?

Choose only one option

Using a fixed percentage of gross written premiums

As the difference between assets and liabilities

Based on a standard formula or an internal model

By applying stress testing to company's financials

Question 3: In insurance risk assessment, what does the "Loss Ratio" signify?

Which action should you take?

Choose only one option

The ratio of total claims to total premiums

The ratio of investment income to total claims

The ratio of administrative expenses to total premiums

The ratio of total premiums to total claims

Question 4: Which statistical test is most appropriate for comparing the mean loss amounts between two different insurance products over a period of 5 years?

Which action should you take?

Choose only one option

T-test for independent samples

ANOVA

Chi-square test for independence

Wilcoxon Rank-Sum test

Question 5: In actuarial science, what is the main purpose of using a copula in multivariate financial modeling?

Which action should you take?

Choose only one option

To simulate the joint distribution and dependencies between multiple financial variables

To perform principal component analysis on financial data

To model the marginal distributions of individual variables

To create a linear combination of financial indicators

Question 6: In the context of predictive modeling for claims forecasting, which method would be most effective for handling non-linear relationships between variables?

Which action should you take?

Choose only one option

Exponential smoothing

Simple linear regression

Moving average methods

Generalized Linear Models (GLMs) with non-linear link functions