I am completely unable to tackle these questions.

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(4 points) Insurance companies commonly use catastrophe models to manage risk for certain perils. (a) (/ point) Provide an example of the hazard intensity component of a catastrophe model for the following events: (1) Hurricane (ii) Earthquake You are analyzing a general insurance company's exposure to the following four perils: Fire II. Flood III. Hail IV. Tornado (b) (2 points) Recommend whether you should use catastrophe modeling for each of the four perils. Justify your recommendations. (c) (/ point) Explain why the probable maximum loss (PML) for all causes of loss combined is less than the sum of the PMLs from each cause of loss.(4 points) Payart Insurance Company offers a 10% discount to homeowners insurance policyholders that have installed a sewer back-up valve. Payart had a one-time only initiative in 2017 to encourage more policyholders to install the valve. You are given the following information: Calendar Percent of Policyholders Year with 10% Discount 2015 15% 2016 17% 2017 23% 2018 25% 2019 28% (a) (2 points) Recommend the annual premium trend to account for changes in the proportion of homeowners policyholders with the 10% discount. Justify your recommendation. You are conducting a premium trend analysis for ratemaking with the following information: New rates will be effective from October 1, 2020 for one year. All policies are six-month policies. You expect the annual premium trend from part (a) to continue into the future rating period. . 2015 earned premium at current rate levels is 540,000. (b) (2 points) Calculate the 2015 earned premium at current rate level trended for ratemaking.(a) (1 point) Describe how credibility and homogeneity can present conflicting objectives in the actuarial work supporting risk classification systems. You are revising your company's homeowners insurance rates to introduce territory as a new risk characteristic. You are given the following information: Trended Earned Premium Trended Ultimate Territory at Current Rate Level Ultimate Claims Counts 1 12,500,000 7.500.000 3,000 4,500,000 3.150.000 810 5,000,000 4.000.000 250 Total 22,000,000 14.650,000 4,060 The full credibility standard is 1,000 ultimate counts. . The complement of credibility is equal to 1. (b) (2 points) Calculate the indicated class relativities for the territory risk characteristic. You are given the following additional information: . The current base rate is 500. . The company will introduce the territory rating factor without introducing any change to the overall average rate level. . The base territory is territory 1. (c) (/ point) Calculate the new base rate. Suppose that M. the number of claims from territory i is distributed as follows: N - Poisson( A ) Where 1 = exexp(1+ c, ) and er is the associated exposure for territory i. (d) (0.5 points) Provide an assumption that is required to obtain a unique set of estimates of parameters 4, c , 4,, and o, . You are given the null hypothesis H, :0 =0, =0, =0. (e) (0.5 points) State the implication of rejecting the null hypothesis.(6 points) You are evaluating data under several independent changing conditions. (a) (1.5 points) Describe how a change in third party claim administrator will affect each of the following: (i) Indemnity or ALAE or ULAE, or combination (ii) The triangle row, column, diagonal, or other effect (iii) Paid or reported data, or both (b) (1.5 points) Describe how a change from in-house legal staff to external legal consultants will affect each of the following: Indemnity or ALAE or ULAE, or combination (ii) The triangle row, column, diagonal, or other effect (iii) Paid or reported data, or both (c) (1.5 points) Describe how a change in the system used for processing claim payments will affect each of the following: Indemnity or ALAE or ULAE, or combination (ii) The triangle row, column, diagonal, or other effect (iii) Paid or reported data, or both (d) (1.5 points) Describe how a new tort reform law capping punitive damages for all claims occurring on or after January 1. 2016, will affect each of the following: (i) Indemnity or ALAE or ULAE, or combination (ii) The triangle row, column, diagonal, or other effect Paid or reported data, or both