There are two periods of time over which claims are analyzed:

Question

Options

• Amortgage year and policy year
• Baccident year and policy year
• Caccident year and ceded year
• Dadjusting year and sales year

• A
  4% (1)
• B
  81% (21)
• C
  12% (3)
• D
  4% (1)

Explanation

Option B is correct because accident year and policy year are the two standard time periods used in actuarial and insurance claim analysis - accident year groups claims by when the loss occurred, while policy year groups them by when the policy was written, allowing actuaries to evaluate loss development and reserve adequacy from different perspectives. Option A is wrong because "mortgage year" has no role in claims analysis; it belongs to lending/finance contexts. Option C fails because "ceded year" is not a recognized analytical period - "ceded" refers to reinsurance transfer amounts, not a time dimension. Option D is incorrect because "adjusting year" and "sales year" are not standard actuarial frameworks for organizing claim data, even though adjusting and sales are real insurance functions.

Memory tip: Think "A and P" - Accident (when it happened) and Policy (when it was written) - the two clocks that tick differently but both matter for understanding claims.

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