Casualty Actuarial Society (CAS) Practice Exam

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Prepare for the Casualty Actuarial Society Exam. Study with practice questions and detailed explanations. Enhance your understanding and increase your chances of passing the exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Which of the following is NOT a supporting function in a typical insurer?

Underwriting
Legal and compliance
Information technology
Actuarial

The correct answer is: Underwriting

Underwriting is a fundamental function of an insurer that directly relates to assessing and determining risk for policy applicants. It involves evaluating the potential risks associated with insuring individuals and businesses and making decisions on whether to accept that risk. This process directly impacts the insurer's core operations as it affects how policies are priced and the types of coverage that will be offered. In contrast, the legal and compliance, information technology, and actuarial functions serve as supporting roles that enable the primary functions of the insurer to operate efficiently. While they are essential for the overall health of the organization, they do not engage directly in the core revenue-generating activities like underwriting does. Therefore, identifying underwriting as a non-supporting function reflects its primary importance in the insurer's operations compared to the other options that act in a supportive role, ensuring that the underwriting process is compliant, efficient, and informed by accurate risk assessments.