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 Property
Life Health Risk MGMT Investment Statistics
Casualty

100 100 100 100 100 100

200 200 200 200 200 200

300 300 300 300 300 300

400 400 400 400 400 400

500 500 500 500 500 500

Life
 Life - $100
Q: It is life insurance which provides coverage at
a fixed rate of payments for a limited period of
time, the relevant term.
A: What is term life insurance or term
assurance?
 Life - $200
Q: A flexible premium policy that combines
protection against premature death with a type
of savings vehicle that typically earns a money
market rate of interest.
A: What is universal life insurance?
 Life - $300
Q: The amount, before adjustments for factors
such as policy loans, that the owner of a
permanent life insurance policy is entitled to
receive if the policy does not remain in force
until the insured’s death.
A: What is cash surrender value?
 Life - $400
Q: A type of bond whose future coupons are
based on the percentage of a stated population
group who are still alive.
A: What is a survivor bond?
 Life - $500
Q: This risk due to the increasing life expectancy
trends among policy holders and pensioners,
and can result in payout levels that are higher
than what a company or fund originally accounts
for.
A: What is longevity risk?
Health
 Health - $100
Q: In the United States, it is a payment defined
in the insurance policy and paid by the insured
person each time a medical service is accessed.
A: What is co-pay?
 Health - $200
Q: The most you will have to pay for covered
medical expenses in a plan year through
deductible and coinsurance before your
insurance plan begins to pay 100 percent of
covered medical expenses.
A: What is out-of-pocket maximum?
 Health - $300
Q: Federal program for people 65 or older that
pays part of the costs associated with
hospitalization, surgery, doctors’ bills, home
health care, and skilled-nursing care.
A: What is Medicare?
 Health - $400
Q: This is a type of health insurance plan that
offers in-network as well as out-of-network
coverage. However, out-of-network coverage is
typically subject to either a higher deductible or
lower co-insurance than in-network, often times
both. No referrals are required in order to access
care.
A: What is Preferred Provider Organization?
 Health - $500
Q: The rate at which sickness and injury occur
within a defined group of people.
A: What is the morbidity rate?
RISK MGMT
 RISK MGMT - $100
Q: The possibility that a person may act
dishonestly in an insurance transaction
A: What is moral hazard?
 RISK MGMT - $200
Q: The use of techniques other than traditional
insurance and reinsurance to provide risk
bearing entities with coverage or protection
A: What is alternative risk transfer?
 RISK MGMT - $300
Q: Insurance companies established with the
specific objective of insuring risks emanating
from their parent group or groups, but they
sometimes also insure risks of the group's
customers
A: What are captive insurance companies?
 RISK MGMT - $400
Q: Contract under which the ultimate liability of
the reinsurer is capped and on which anticipated
investment income is expressly acknowledged as
an underwriting component
A: What is finite risk reinsurance or financial
reinsurance?
 RISK MGMT - $500
Q: The risk that a borrower will default on any
type of debt by failing to make required
payments
A: What is credit risk?
Property Casualty
 P&C - $100
Q: This type of insurance covers data breaches,
corruption of data
A: What is cyber liability?
 P&C - $200
Q: In an insurance policy, it is the amount of
losses/expenses that must be paid out of pocket
before an insurer will cover any losses or
expenses.
A: What is a deductible?
 P&C - $300
Q: It is the ratio of claim and expense to
premium and shows an underwriting profit if the
ratio is under 100%
A: What is the combined ratio?
 P&C - $400
Q: This type of insurance provides professional
liability coverage for physicians, against suits
alleging negligence or errors and omissions that
have harmed clients
A: What is medical malpractice insurance?
 P&C - $500
Q: Coverage for losses above the limit of an
underlying policy or policies such as
homeowners and auto insurance. While it
applies to losses over the dollar amount in the
underlying policies, terms of coverage are
sometimes broader than those of underlying
policies.
A: What is an umbrella policy?
Investments
 Investments - $100
Q: This financial instrument represents a stream
of payments indefinitely.
A: What is a perpetuity?
 Investments - $200
Q: It is a method for constructing a (zero-
coupon) fixed-income yield curve from the
prices of a set of coupon-bearing products, e.g.
bonds and swaps.
A: What is bootstrapping?
 Investments - $300
•This formula

expresses the price of an option in terms of

time, volatility and the current price of the
underlying stock
A: What is Black Scholes formula?
 Investments - $400
Q: Common examples of instruments created
through this process include collateralized debt
obligations (CDOs) and asset-backed securities
(ABS).
A: What are examples of structured assets, aka
securitized assets?
 Investments - $500
Q: A line that plots the interest rates, at a set
point in time, of bonds having equal credit
quality, but differing maturity dates
A: What is yield curve?
Statistics
 Statistics - $100
Q: This statistic is a measure of the asymmetry
of the probability distribution of a real-valued
random variable about its mean.
A: What is skewness?
 Statistics - $200
Q: The ratio of σ to µ
A: What is the coefficient of variation?
 StATISTICS - $300
Q: This statistical measure σ(x,y) is a measure of
how two variables change together
A: What is the covariance?
 Statistics - $400
Q: This theorem gives the relationship between
P(A) and P(B) and P(B|A) and P(A|B)
A: What is Bayes theorem?
 Statistics - $500
•Q: The following pdf is typically used to
represent frequency of claims and relies on a
single parameter, lamba, which describes the
periodic frequency of events.

A: What is Poisson distribution?

Questions?
 Suggestions
For any suggestions or improvement requests, please contact either
Alice Chambers – achambers@casact.org or
Xiaoyan Anderson – xanderson@soa.org
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