1. Posts in the subject areas are now being moderated. Please do not post any details about your exam for at least 3 working days. You may not see your post appear for a day or two. See the 'Forum help' thread entitled 'Using forums during exam period' for further information. Wishing you the best of luck with your exams.
    Dismiss Notice

Exam technique - September 2017 1 (ii)

Discussion in 'SA1' started by cw812, Mar 25, 2021.

  1. cw812

    cw812 Keen member

    Hi,

    I understand that exam solution contains more points than required to score full marks. In this question, the solution suggests both 'increase premium...' and 'reduce premium...' which seem contradictory. Would they be counted as two distinct ideas or should i just pick one in exam?

    Regards,
    cw812
     
    cw812, Mar 25, 2021
    #1
  2. Sarah Byrne

    Sarah Byrne ActEd Tutor Staff Member

    Hi cw812

    In this question it would have been fine. The actions in part (ii) depend on the cause of the loss, so as the solution says, if it was due to low new business volumes, reducing premiums would help. Alternatively, if the loss was caused by poor claims experience, increasing premiums to cover the expected claims would help. The solution isn't saying both will be appropriate, but they are suggested actions. I actually think it was important not to just assume one option in this particular question as it would potentially have closed ideas to you and made part (ii) more difficult.

    So, it very much depends on the question.

    Best wishes
    Sarah
     
    Sarah Byrne, Mar 29, 2021
    #2

Share This Page