American Bankers Association Exam CTFA Topic 9 Question 46 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 46
Topic #: 9

[All CTFA Questions]

Which projection method uses paid losses plus reserves on outstanding claims?

AAverage losses

BLoss ratio

CIncurred loss

DNone of the above

Show Suggested Answer

Suggested Answer: B

by Malcolm at Apr 01, 2023, 11:25 PM

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Corazon

2 days ago

I'm not sure, but I think it might be B) Loss ratio because it also considers the relationship between losses and premiums.

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Moira

4 days ago

D - None of the above? Really? This is a pretty straightforward actuarial concept. I'm confident it's C.

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Leota

6 days ago

I was torn between B and C, but I'm going with C since it specifically mentions paid losses plus reserves. Seems like the more comprehensive approach.

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Carlene

8 days ago

I think it's option C - Incurred loss. That makes the most sense to me in terms of accounting for both paid losses and outstanding reserves.

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Viki

11 days ago

I agree with Lisbeth, because it takes into account both paid losses and reserves.

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Lisbeth

16 days ago

I think the answer is C) Incurred loss.

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