Preview Questions Actuary | Role Specific Skill

Question 1: When conducting a pension plan stress test, which factor would most likely be evaluated for its effect on funding levels?

Which action should you take?

Choose only one option

Impact of future salary growth assumptions

Changes in mortality assumptions

All of the above

Changes in inflation rates

Question 2: In pension plan analysis, what does "sponsor risk" refer to?

Which action should you take?

Choose only one option

The risk that the pension plan's investments will underperform

The risk that participants will leave the company before vesting

The risk that regulatory changes will affect the pension plan's benefits

The risk that the pension plan sponsor will default on its contributions

Question 3: Which of the following is a common method used to forecast long-term liabilities in an insurance company?

Which action should you take?

Choose only one option

Using the Poisson distribution to model claims events

Assuming a constant claims ratio over time

Projecting cash flows using discounted cash flow models

Using historical claims data to extrapolate future losses

Question 4: What is "actuarial fairness" in the context of insurance pricing?

Which action should you take?

Choose only one option

Ensuring that premiums are the same for all policyholders

Offering discounts for low-risk policyholders

Setting premiums so that the expected premium equals the expected payout, without loading for profit or expenses

Charging higher premiums for riskier individuals

Question 5: How does Solvency II treat the valuation of insurance liabilities?

Which action should you take?

Choose only one option

Using historical cost accounting

By using a market-consistent approach with risk-free discount rates

By assessing future cash flows and adjusting for tax impacts

By adjusting liabilities based on inflation rates

Question 6: In time series analysis for financial forecasting, what does the ARIMA model stand for and what are its components?

Which action should you take?

Choose only one option

Autoregressive Indicator Moving Average; components are AR, I, MA

Autoregressive Integrated Modeling Average; components are AR, MA, I

Auto Regression Integrated Moving Average; components are AR, MA, I

Autoregressive Integrated Moving Average; components are AR, I, MA