Introduction to Actuarial Science

UNIVERSITY OF CAPE TOWN
NOVEMBER 2009 EXAMINATIONS
INTRODUCTION TO ACTUARIAL SCIENCE (BUS1003H)

Time allowed: 2 hours Total marks: 70

INSTRUCTIONS

• Answer all questions

• You must show your working in full in all questions

• Approved calculators may be used, but all memories and user-supplied programmes must be cleared before you begin the examination.

• Some tables are provided.

• For each of the multiple choice questions write down exactly one of the symbols A,B,C or D to indicate which of the suggested answers you think is most correct.

• Marks shown are approximate.

• The Question Paper is in 8 parts. Answer each part in a separate answer book. PART 1 consists of questions 1- 22 These should go into a separate book. (SK) PART 2 consists of question 1 This should go into a separate book. (SR) PART 3 consists of questions 1-2 These should go into a separate book. (HdT) PART 4 consists of question 1 This should go into a separate book (MV). PART 5 consists of questions 1-2 These should go into a separate book. (SK) PART 6 consists of question 1 This should go into a separate book. (RD) PART 7 consists of question 1 This should go into a separate book. (IM) PART 8 consists of question 1 This should go into a separate book (LK)

• You may write on both sides of the pages of your answer books.

• At the end of the examination you should remain seated while each PART of the examination paper is collected separately.

PART 1

Question 1
Which of the following are some of the characteristics of a capitation agreement?

A. There is a greater risk of the doctor over-servicing the patient; the Medical Scheme transfers some of its risk to the member; the doctor receives an amount per patient