Florida Insurance Licensing Practice Exam 2025 - Free Insurance Licensing Practice Questions and Study Guide

Question: 1 / 400

What is the primary role of an actuary in the insurance industry?

To provide legal advice regarding insurance policies

To manage client relationships and service

To analyze financial risks using mathematics and statistics

The primary role of an actuary in the insurance industry is to analyze financial risks using mathematics and statistics. Actuaries apply mathematical and statistical methods to assess the likelihood of future events and their financial impact. This involves evaluating data related to mortality, morbidity, accidents, and property loss, among other factors, to predict future claims and determine appropriate premium rates.

This role is crucial because it helps insurance companies maintain solvency and profitability by ensuring that premiums are sufficient to cover claims. Actuaries also contribute to the design of insurance products, reserve management, and regulatory compliance, making their expertise vital for the financial health and sustainability of insurance operations.

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To underwrite insurance applications for new policies

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