Which one of the following statements regarding the loss-triangle method for reserving is true?
A. It is not affected by variances in loss frequency.
B. It is not affected by variances in loss severity.
C. It does not use historical loss development patterns to forecast future loss development.
D. The loss data in a loss triangle may or may not include allocated loss adjustment expenses.

Question

07-06-2024
Business

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Which one of the following statements regarding the loss-triangle method for reserving is true?
A. It is not affected by variances in loss frequency.
B. It is not affected by variances in loss severity.
C. It does not use historical loss development patterns to forecast future loss development.
D. The loss data in a loss triangle may or may not include allocated loss adjustment expenses.

Sagot :

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