Exam STAM (Short-Term Actuarial Mathematics) Claims Practice Questions

A health insurer is analyzing its claims data for the last five years. What would be the best approach to assess future claims?

• AA. Linear trend analysis
• BB. Use predictive modeling
• CC. Adjust for inflation
• DD. Historical averages

A car insurance company is looking at its customers' claims data and notices a trend of increasing claims for accidents. What could they consider changing?

• AA. Underwriting guidelines
• BB. Premium collection methods
• CC. Claims processing procedures
• DD. Turnaround time

A property insurer's claims experience has shown a trend of increasing claims due to natural disasters. What is the best reactive approach?

• AA. Improve marketing
• BB. Adjust premium rates
• CC. Increase reserves
• DD. Drop coverage

A group of actuaries is comparing different models for predicting future claims. Which aspect is critical in model selection?

• AA. Historical accuracy of the model
• BB. Simplicity of the model
• CC. Cost of implementation
• DD. Availability of data