1. Review for the First Exam Describe Exam Review Major Topics Provide Study Tips and Exam Strategies Sample Exam

2. First Exam When and Where? Tuesday, February 25, 2003 120 Architecture Section 1: 12:30-1:30 pm Section 2: 1:40-2:40 pm

3. Section 1 Exam 12:30-1:30 Anyone whose last name begins with A-M (unless listed on the next page) plus: Andrea SchatteLin-Uei Wang Jonathan SchildtAmy Ward Manish ShahCamille Williams Maria Valencia Anne Wolfe Hongtao Wang Ryan Young

4. Section 2 Exam 1:40-2:40 pm Anyone whose last name begins with N-Z, plus: Richard Atamian Ryan Conrad Robert King Eric Banach Ryan Dau M. Klincewicz Anthony Bredel Kristen Dee Aaron Koch Pamela Caraonongan Xuemei Du Julie Landreth Bernard Chan Barry Fisher Peter Lee Alexander Chang Justin Greindl Yen-An Lin Huey Fang Chen Sana Humayoun Michael Mattila Yi-Chieh Chen Julie Jansen Jonathan Miller Fang-yi Cheng Daniel Jurjovec Douglas Moses Chia-Hui Chien Nicole Kaleta Z. Mungai SzeYi Chow Jennifer KavadasG. Muradyan

5. Pre-Exam Office Hours Steve D’Arcy – 311 Wohlers Thursday, Feb. 202:30-4 pm Brooke Miller – 108 Survey Saturday, Feb. 222-3 pm Monday, Feb. 24 1-2:30 pm Tuesday, Feb. 25 11 am – 12 noon

6. First Exam 20 Questions in Total Exam is Worth 30 Points. Some True/False or Multiple Choice Others Short Answer or Calculations Exam is Open Book, Open Note Bring Calculator (that you are familiar with using) and Auto and Homeowners

7. Sample Questions 1. Management of mutual insurers are immune to a hostile takeover by a new owner. T F 2. The pure premium is the total of expected claims and expenses on an insurance policy. T F

8. Sample Questions 3. Preferred Risk Insurance Company wrote auto insurance for teetotalers. What marketing strategy for competitive positioning is this company following? A. Market leader B. Market challenger C. Market follower D. Market nicher E. Market pricer

9. Sample Questions 4.Calculate the gross premium using the pure premium method based on the following information: Loss frequency10% Loss severity$900 Fixed expenses$100 Variable expenses50%

10. Sample Questions 5.How do you calculate the combined ratio? A.Loss ratio plus loss adjustment expense ratio B.Loss ratio plus expense ratio C.Loss ratio plus expense ratio minus investment income ratio

11. Topics the Exam Covers Overview of Insurance Operations Marketing and Distribution Systems Underwriting Claims Adjusting Ratemaking Loss Reserving Reinsurance

12. Study Tips Review Homework Assignments If you have not been doing well on the assignments, then you probably need to read the texts (on reserve in Undergrad Library) Review Class Projects Do not memorize material, but know where it is located, if you need to look it up Have organized notes

13. Exam Strategies Answer all the questions you can answer without using your book and detailed notes first. Then, if you have time, use your book and detailed notes to help you answer the remaining questions. Do not get bogged down on a particular question. Skip it and come back, if you have time left.