Insurance
Chicago Facts
Laws and History
Actuarial Profession & Exams
DePaul Actuarial Club
100
What portion of the property/casualty insurance industry losses and adjustment expenses is fraud? (A) 5% (B) 10% (C) 15% (D) 20% (E) 25%
B) Insurance industry estimates generally put fraud at about 10 percent of the property/casualty insurance industry’s incurred losses and loss adjustment expenses each year, although the figure can fluctuate based on line of business, economic conditions and other factors. Using this measure, over the five-year period from 2013 to 2017, property/casualty fraud amounted to about $30 billion each year.
100
What was Illinois' unfunded liability amount as of end of fiscal year 2018? (A) 125.5 billion (B) 133.5 billion (C) 138.5 billion (D) 141.5 billion (E) 147.5 billion
Illinois’ already huge unfunded pension liability grew bigger in fiscal 2018, rising to $133.5 billion from $129 billion at the end of fiscal 2017 mainly due to inadequate state funding, according to a legislative report released in December.
100
Which of the following is the most costly storm in all U.S history? (A) Katrina (B) Ivan (C) Andrew (D) Charley (E) Agnes
Hurricane Katrina was the most destructive hurricane in US history caused an estimated $100 - $200 billion in damage.
100
How many members does the Casualty Actuarial Society have as of 2017 year end? (A) 5,417 (B) 6,593 (C) 7,132 (D) 7,902 (E) 8,487
E. There are 7,902 members.
100
How many members does the club have right now? (A) < 100 (B) 100-110 (C) 110-120 (D) 120-130 (E) > 130
There are 133 members of the actuarial club as of today.
200
*Double Bonus* True or False: Your pets in your household are covered by your homeowners' insurance policy.
False. Liability claims caused by your pets is covered, however. For example, if your dog attacked a mailman or your friend visiting you. Separate pet insurance is available to insure them against accidents and illnesses.
200
What is the official estimated population of the city of Chicago in 2017? (A) 2,316,450 (B) 2,516,450 (C) 2,716,450 (D) 2,916,450 (E) 3,116,450
Chicago is the most populous city in Illinois, as well as the third most populous city in the United States. With an estimated population of 2,716,450 (2017), it is the most populous city in the Midwest. The metropolitan area, at nearly 10 million people, is the third-largest in the United States, and the fourth largest in North America (after Mexico City, New York City and Los Angeles) and the third largest metropolitan area in the world by land area.
200
Which state created the first department of insurance to regulate the sale of insurance? (A) Illinois (B) Massachusetts (C) Texas (D) California (E) New York
New York was the first to create a department and made laws to impose taxes on insurers from another state to protect in-state insurers.
200
Which of the following is not a professional actuarial designation? (A) F.S.A. (B) C.L.U. (C) M.A.A.A. (D) F.C.A.S.
B) is not an actuarial designation. F.S.A. is the designation for Fellow of the Society of Actuaries. C.L.U. is a designation for individuals involved in marketing and underwriting insurance. M.A.A.A. is a member of the American Academy of Actuaries attained by experience and other qualifications. This organization deals primarily with matters of public policy such as regulation and standard of conduct. F.C.A.S. is a Fellow of the Casualty Society of Actuaries.
200
What is the total number of ASAs, FSAs, ACAS and FCAS that have been DePaul students, as of Summer 2018? (A) < 50, (B) 50-60, (C) 60-70, (D) 70-80, (E) > 80
29 ASAs, 20 FSAs, 8 ACAS and 15 FCAS = 72 in total.
300
You are at a Holiday Inn and are walking down the stairs when suddenly you trip over your own feet and tumble down the stairs. You are in shock at first but then your ankle starts killing you and the manager comes over and offers to call 911. Is the hotel automatically obligated to pay for your medical bills?
No. The hotel must be liable for your injuries or in other words, at fault. Perhaps there was a spill on the stairs and it was not cleaned up. In that case, they would be and you would also be entitled to pain and suffering. However, just falling on someone's property does not make them liable.
300
What do the four red stars on the flag of Chicago represent?
The stars symbolize historical events. The historic events represented by the stars are Fort Dearborn, the Great Chicago Fire of 1871, the World's Columbian Exposition of 1893, and the Century of Progress Exposition of 1933–34.
300
To meet insurance needs not available in the private marketplace, federal and state governments have to intervene in acting as a reinsurer or establish a pool of funds to spread the risks and avoid social disruptions. Name one risk that is not available in the marketplace due to its scale or marketability.
Flood risk - National Flood Insurance Plan
Terrorism risk- Terrorism Risk Insurance Act
300
*Double Bonus* From etymology, what occupation does the word “actuary” originate from?
Answer: In mid 16th century, originally denoting a clerk or registrar of a court. It derived from Latin actuarius 'bookkeeper', from actus ‘public business’. The current meaning dates from 1849
300
Who is the founder of DePaul's Actuarial Science Club?
Rolande Mbatchou. She started the club about 10 years ago.
400
Who pays the claims if an insurance company went bankrupt? (A) State government (B) Federal government (C) National Insurance Office (D) Other insurance companies (E) Reinsurers
An assessment will be charged to all the insurer companies operating in the state by their market share based on written premium in that year. These costs are passed on to the customers indirectly. Reinsurers are only responsible for their share of losses.
400
Which company the iconic building shown in the photo is named after?
CNA
400
Lloyd's of London is an insurance market place for marine and other specialist types of insurance. It started out from a business run by Edward Lloyd which was a popular haunt of ship owners, merchants, and ships' captains. What business was it? (A) Bar (B) Book Club (C) Coffee House (D) Restaurant (E) Music Theater
The coffee house became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures.
400
*Double Bonus* What is the median annual salary for actuaries as of May 2017? (A) $98,620 (B) $101,560 (C) $103,620 (D) $105,560
According to the U.S. Bureau of Labor Statistics, the median annual salary for actuaries was $101,560 as of May 2017
400
Who created the current logo of DePaul's Actuarial Science Club?
The design by Kinga Mamulska, past president and networking officer, was selected from among 3 competing designs.
500
You go to "Burger King" and eat a value meal. Two hours later, you get really sick to your stomach and start vomiting. What is your best chance at holding "Burger King" accountable? (A) Go back and confront the manager on duty (B) Seek immediate medical attention (C) Call an attorney (D) Call the health department
B. These are all decent answers but the most important thing to do is seek medical attention so the doctors can figure out if it really food poisoning or not. If no one else at "Burger King" got sick, there is a good chance you have a bug or picked something up from your own kitchen. Most food poisoning like salmonella takes 24-48 hours to incubate. It is up to you to prove Burger King is liable.
500
What was the average temperature in Chicago for the month of January 2018? (A) 25°F, (B) 27°F, (C) 29°F, (D) 31°F, (E) 33°F
27°F
500
In which ancient civilization was the concept of insurance first mentioned in written law? (A) Babylon (B) China (C) Europe (D) India (E) Egyptian
The first written insurance policy appeared in ancient times on a Babylonian obelisk monument with the code of King Hammurabi carved into it. The "Hammurabi Code" was one of the first forms of written laws. These ancient laws offered basic insurance in that a debtor didn't have to pay back his loans if some personal catastrophe made it impossible (disability, death, flooding, etc.).
500
How many fellowship tracks does the Society of Actuaries have?
Six. The last of them (General Insurance) was added about 5 years ago.
500
What was the official way of deciding who will be an officer, assuming two candidates for that position got an equal number of votes, up until last year?
Play a round of "paper-rock-scissors".