Casualty Actuarial Society (CAS) Practice Exam

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Prepare for the Casualty Actuarial Society Exam with our quiz. Use flashcards and multiple-choice questions, each accompanied by hints and explanations. Ace the exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What might be a recommended modification to make a submission more acceptable?

Increase policy exclusions
Change insurance rates or policy limits
Shorten the policy term duration
Eliminate risk control measures

The correct answer is: Change insurance rates or policy limits

Changing insurance rates or policy limits can greatly enhance the acceptability of a submission by ensuring that the terms align more closely with the risk exposure and underwriting guidelines. Adjusting the rates reflects the actual risk being underwritten and can make the product more appealing to both the insurer and the policyholder. Additionally, revising policy limits may help accommodate the insured's needs while still allowing the insurer to manage potential liabilities effectively. When rates are adjusted appropriately, they can adequately cover the anticipated claims and contribute to the overall profitability of the policy. Similarly, modifying policy limits can aid in providing coverage that is both competitive in the market and sustainable for the insurance provider. In contrast, increasing policy exclusions may limit coverage excessively, making the submission less attractive. Similarly, shortening the policy term could create issues regarding premium adjustments and customer satisfaction, while eliminating risk control measures would increase the potential for loss, likely making the submission less favorable to underwriters.