SOA真题November2003Course8G

13. (4 points) You have been asked by your client at BEST HMO to create a presentation that
will enable her to convince management to establish new methods for physician
compensation.
(a) Describe traditional and new, alternative forms of capitation and their suitability
for specific types of physicians.
(b) Describe traditional and new, alternative forms of incentive plans.
COURSE 8: Fall 2003 -10- GO TO NEXT PAGE
Health and Group Life Segment
Afternoon Session
14. (5 points) You are a consultant hired by TeethFerry.com, a company hoping to use the
Internet to market dental plans. They have created a marketing communication to be sent
to companies that do not currently have a benefits program.
From: TeethFerry.com
Subject: Quality Dental Coverage with 3 Months at No Charge
Affordable Dental Coverage
•save up to 60% on all your dental needs
•choose from 15 of the finest nationwide and regional plans
•pay premiums, submit claims, get the latest information, all on your desktop!
(a) List the general types of delivery systems for dental plans and their major
features.
(b) Outline plan provisions and claim practices that dental insurers can use to
limit cost and anti-selection.
(c) Describe challenges that e-commerce companies must overcome to be
successful.
15. (4 points) You are the health actuary for XYZ Life Insurance Company. XYZ has been
marketing Individual Long Term Care insurance (ILTCI) for several years, but the
product has not performed well.
A large national employer has approached XYZ, expressing a desire to offer its
employees a Group Long Term Care insurance (GLTCI) product which XYZ does not
currently offer.
XYZ’s executive management has expressed concern about developing a GLTCI product
given the company’s poor experience with their ILTCI product. You have been asked to:
(a) Explain difficulties experienced by the industry in pricing and reserving early
versions of long term care products.
(b) Describe differences in plan design and pricing considerations between GLTCI
and ILTCI.
COURSE 8: Fall 2003 -11- GO TO NEXT PAGE
Health and Group Life Segment
Afternoon Session
Question 16 pertains to the Case Study
16. (5 points) You are the Chief Actuary of Wonderful Life, which offers Individual
Disability Insurance (IDI) on a Noncancellable and Guaranteed Renewable basis.
Wonderful Life has not dramatically changed the IDI product since the 80’s. Your
President is concerned about the volatility of the product and recent IDI experience in
particular. He has asked you to provide recommendations to improve the performance of
the IDI block.
In addition to the information provided in Tables GLD-3b, GLD-6b, and GLD-8b, the
following assumptions are provided:
•Benefit period is 3 years
•All qualified benefits are paid at end of year
•The interest rate is 5.0%, and it is the same rate used in developing original
manual rates
•Annualized termination rates can be used
•The IDI block experience is fully credible
•All policies were rated based on manual rates developed from the above table
assumptions.
(a) Outline general actions which might be taken to improve profit and/or reduce
volatility, in light of historical changes in the IDI industry.
(b) Recent performance indicators show actual-to-expected incidence rate is 120%
across all age bands, and actual- to-expected termination is 110% in annualized
claim termination rates. Calculate the manual rate for a male age 42 becoming
disabled at age 42. Show your work.
COURSE 8: Fall 2003 -12- GO TO NEXT PAGE
Health and Group Life Segment
Afternoon Session