QUESTION 8 Affordability has become a crucial social objective in determining proper personal lines rates. A strategy to help ensure the affordability of these insurance rates would be To use controllable rating factors only. To establish risk sharing pools. To offer price incentives for loss control. To subsidize rates for high risks. QUESTION 9 Which one of the following would most likely be covered under a personal umbrella policy? Interest on unpaid judgments Damage to property an insured owns Intentional injury Workers compensation QUESTION 10 Mike is an actuary who uses a variety of mathematical tools in pricing insurance products. For instance, the driver's age, vehicle use, vehicle type, and vehicle protective devices are all considered to be part of which one of the following when he prices personal auto coverage? Pure premium charge. Base rate development. Class relativity factors. Loss development factors. QUESTION 11 Which one of the following types of vehicle has the most severe bodily injury exposure? Motorcycles Automobiles Golf carts Go-carts