Discuss the qualitative and regulatory factors that shape how a rate proposal is built and filed.
Free CAS Exam 5 (Basic Ratemaking and Reserving) lesson in Ratemaking. 22 min read, ~3,333 words.
Rates must be not excessive, not inadequate, and not unfairly discriminatory. The indicated change is the actuarial answer; the selected (filed) change is a business decision shaped by marketing, regulation, and operations. Rate regulation ranges from strict prior approval to open competition; flex rating auto-approves changes inside a band. Regulators...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- A18
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