The primary function of an actuary is to
A)adjust claims.
B)determine premium rates.
C)negotiate reinsurance treaties.
D)invest insurance company assets.

Question

Quizplus · Accepted Answer

The primary function of an actuary is to determine premium rates for insurance products based on risk assessment and calculations of probability of loss. They use mathematical models and statistical analysis to analyze data and develop premium rates that are appropriate for the level of risk involved. While actuaries may be involved in other functions like investing insurance company assets, negotiating reinsurance treaties, and adjusting claims, these are not their primary roles.

The Primary Function of an Actuary Is to