One duty of the insurance company actuary is to:
A) handle claims when they involve property exposures and losses in multiple states
B) manage all contract negotiations when the agency agreement is signed by the agent and company
C) determine premium rates and classification schemes for the underwriters to apply
D) eliminate exposures from the pool that are going to have a loss

Question

Quizplus · Accepted Answer

The primary duty of an insurance company actuary is to determine premium rates and classification schemes for the underwriters to apply. Actuaries analyze data and use statistical models to estimate the likelihood of future events, such as accidents or illnesses, and calculate the financial impact of those events for the insurance company. These calculations help determine the appropriate premium rates to charge policyholders.

One Duty of the Insurance Company Actuary Is To