___________________are often organized with the origin period set to the period in which the contract incepted.

Question

Options

• ALoss liability triangles
• BLoss development triangles
• CNon-admitted triangles
• DAccident period triangles

• A
  9% (5)
• B
  74% (43)
• C
  3% (2)
• D
  14% (8)

Explanation

Loss development triangles are the standard actuarial tool organized by origin period (the period when the policy incepted or the loss occurred), with columns representing development periods - this structure lets actuaries track how losses "develop" over time from inception through ultimate settlement.

Why the distractors are wrong:

• A. Loss liability triangles - not a standard actuarial term; "loss liability" conflates two separate concepts.
• C. Non-admitted triangles - "non-admitted" refers to insurance carriers not licensed in a given state, not a triangle organization method.
• D. Accident period triangles - these exist, but they're organized by when the accident occurred, not when the contract incepted; the question specifically says "origin period set to the period in which the contract incepted," which describes a policy year or underwriting year triangle, a subset of loss development triangles.

Memory tip: Think "development = growing over time from birth" - the origin period is the contract's "birth" (inception), and the triangle tracks how losses develop outward from that starting point. The word "development" in the name signals the time-progression structure.

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