A.1. ASOP 12 Flashcards
1
Q
Considerations for which risk characteristics to use
A
- Relationship of risk characteristics & expected outcomes
- Causality
- Objectivity
- Practicality
- Applicable Law
- Industry practices
- Business practices
Rates Can Only Be Perfect If Legal
2
Q
Considerations in establishing risk classes
A
- Intended use
- Actuarial considerations: Credibility, homogeneity and practicality
- Other considerations: Law, industry, and business practices.
- Reasonableness of results
