Exam technique - September 2017 1 (ii)

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

  1. cw812

    cw812 Keen member


    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?

  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

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