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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Ronald

1 months ago

As an actuary, I'm offended that 'None of the above' is even an option. Of course it's C, incurred loss. What kind of exam is this?

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Twila

7 days ago

Yeah, it's definitely C, incurred loss.

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Coleen

9 days ago

I agree, 'None of the above' seems like a trick option.

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Coleen

2 months ago

Haha, D - None of the above? That's gotta be a trick answer. I'm going with C, the good old incurred loss method.

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Reita

23 days ago

I'm leaning towards A) Average losses, but now I'm not so sure.

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Lorenza

1 months ago

I'm not sure, but I think B) Loss ratio could also be a possibility.

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Julio

1 months ago

I think you might be right, C) Incurred loss does make sense.

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Corazon

2 months 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

2 months ago

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

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Ivan

1 months ago

User 2: No, I'm pretty sure it's C - Incurred loss.

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Micah

1 months ago

User 1: I think it's B - Loss ratio.

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Leota

2 months 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

2 months 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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Raina

29 days ago

No problem! It's always good to double check and make sure you understand the different projection methods.

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Vivan

2 months ago

Oh, I see. Thanks for clarifying that. I wasn't sure about the other options.

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Markus

2 months ago

Yes, you're correct. Incurred loss is the projection method that uses paid losses plus reserves on outstanding claims.

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Gwenn

2 months 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

3 months ago

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

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Lisbeth

3 months ago

I think the answer is C) Incurred loss.

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