{"text_format":"1","workbook":"xlsx","n_sheets":34,"sheets":["TOC","Solv2","InvCap","double_tax","taxes1","taxes2","taxes3","goodwill","SAP-assets","SAP-liabs","IS1","IS2","IS3","alsuioc","17F.11","17F.13","17F.14","17F.27b","RBC(ratio)","RBC(charge)","RBC(1a)","RBC(1b)","RBC(1,2)","RBC(3)","RBC(4)","RBC(5)","17S.13","17S.26-easy","17S.26","16S.27","10-10","IEE.SA","IEE.TIA","IEE.PL"],"not_rendered":{"charts":0,"images":0,"macros":1,"external_links":0,"defined_names":0,"comments":0,"pivot_tables":0},"unopened":[],"bounds":{"document_bytes":16777216,"sheet_cells":100000,"rows_first":2000,"rows_last":500,"rows_between":2000,"halvings":0,"cell_chars":16384,"cell_head_chars":4096},"cells_cut":0,"cells_raw":0,"read":"whole","date_system":"1900"}

{"sheet":"TOC","index":0,"n_rows":35,"n_cols":5,"rows_kept":35,"cut":false,"hidden":false,"merged":[]}
[null,null,"put cursor in column C THEN cntrl-o takes you to that sheet   [ALSO: use cntrl-o from anywhere to get back to TOC]"]
[null,"#","type",null,"flag"]
[null,1,"Solv2           : solvency 2 capital requirement & regulatory action",null,"random"]
[null,2,"InvCap          : invested capital & PV(future income)",null,"random"]
[null,3,"double_tax      : premium margin required to offset double-taxation",null,"random"]
[null,4,"taxes1          : tax-basis income",null,"random"]
[null,5,"taxes2          : income tax (includes calculating tax-basis income)",null,"random"]
[null,6,"taxes3          : calculating the company discount factor",null,"random"]
[null,7,"goodwill        : GAAP goodwill using cost-of-capital approach",null,"random"]
[null,8,"SAP-assets      : SAP admitted assets",null,"random"]
[null,9,"SAP-liabs       : SAP liabilities",null,"random"]
[null,10,"IS1             : statutory net income (version 1)",null,"random"]
[null,11,"IS2             : policyholder's surplus",null,"random"]
[null,12,"IS3             : statutory net income (version 2)",null,"random"]
[null,13,"alsuioc         : locating items in B/S and I/S",null,"random"]
[null,14,"17F.11          : Schedule P",null,"random"]
[null,15,"17F.13          : carrying value of bonds under SAP",null,"random"]
[null,16,"17F.14          : restating balance sheet",null,"random"]
[null,17,"17F.27b         : restate triangles after commutation",null,"random"]
[null,18,"RBC(ratio)      : Calculating the RBC ratio",null,"random"]
[null,19,"RBC(charge)     : Calculating the RBC charges (not the ratio)",null,"random"]
[null,20,"RBC(1a)         : Calculate RBC charge R1.",null,"random"]
[null,21,"RBC(1b)         : Calculate RBC charge R1.",null,"random"]
[null,22,"RBC(1,2)        : Calculate RBC charges R1 and R2",null,"random"]
[null,23,"RBC(3)          : Calculate the RBC charge for R3",null,"random"]
[null,24,"RBC(4)          : Calculate RBC charge R4 (reserve risk)",null,"random"]
[null,25,"RBC(5)          : Calculate RBC charge R5 (NWP risk)",null,"random"]
[null,26,"17S.13          : Schedule P (& non-Schedule P) losses & premiums for INTERCOMPANY POOLING",null,"random"]
[null,27,"17S.26-easy     : change in taxable income - easy version",null,"random"]
[null,28,"17S.26          : change in taxable income",null,"random"]
[null,29,"16S.27          : mutually beneficial commutation price",null,"random"]
[null,30,"10-10           : 10-10 rule for assessing risk transfer",null,"random"]
[null,31,"IEE.SA          : Allocation of surplus to line of business",null,"random"]
[null,32,"IEE.TIA         : Calculation of basic IEE quantities: FAIT & TIA",null,"random"]
[null,33,"IEE.PL          : Pre-tax profit (loss)",null,"random"]

{"sheet":"Solv2","index":1,"n_rows":30,"n_cols":10,"rows_kept":30,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.25-Solv2"]
["Model:",null,"2017.Spring #20"]
["Problem Type:",null,"solvency 2 capital requirement & regulatory action"]
[]
["Given",null,"IFRS assets",null,6600]
["random"]
[null,null,"free surplus",null,"?",null,"risk-free rate",null,1.5800000000000002E-2]
[null,null,"SCR",null,"?",null,"illiquidity premium",null,6.0000000000000001E-3]
[null,null,"MCR",null,2990,null,"cost-of-capital"]
[null,null,"risk margin",null,"?",null,"above risk-free rate",null,6.5000000000000002E-2,"  = (R - i)"]
[null,null,"best est. liabs",null,1760]
[]
[]
[null,null,"* Capital is held until the end of the year."]
[]
[null,null,"* Loss payments are expected to occur this many years:",null,null,null,null,null,4]
[null,null,"   (Assume payments are mid-year)"]
[]
[null,null,"* These are the Value-at-Risk model results:",null,null,null,null,"percentile","VaR"]
[null,null,"   (Assume SCR values are constant for all",null,null,null,null,0.95,3140]
[null,null,"    future years.)",null,null,null,null,0.99,3500]
[null,null,null,null,null,null,null,0.995,4660]
[null,null,null,null,null,null,null,0.999,5780]
[]
[]
["Find",null,"Calculate the following under the Solvency II framework:"]
[null,null,"(a)","SCR"]
[null,null,"(b)","risk margin"]
[null,null,"(c)","regulator action"]
[null,null,"(d)","free surplus"]

{"sheet":"InvCap","index":2,"n_rows":25,"n_cols":8,"rows_kept":25,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Feldblum.Surplus"]
["Model:",null,"2018.Spring #12"]
["Problem Type:",null,"invested capital & PV(future income)"]
[]
["Given",null,"From a company's CY annual statement:"]
["random"]
[null,null,"statutory surplus",null,null,null,"S",590]
[null,null,"deferred tax assets",null,null,null,"DTA",70]
[null,null,"unearned premium reserve",null,null,null,"UEP",440]
[null,null,"undiscounted loss reserve",null,null,null,"R",1260]
[]
[null,null,"Other junk you need to solve the problem:"]
[]
[null,null,"written premium (annual)",null,null,null,"WP",730]
[null,null,"pre-tax income (annual)",null,null,null,"Inc:pre",160]
[null,null,"cost of liquidation",null,null,null,"CoL",70]
[null,null,"cost of capital",null,null,null,"% CoC",0.11]
[null,null,"tax rate",null,null,null,"% tax",0.35]
[null,null,"pre-paid acquisition cost",null,null,null,"% acq",0.2]
[null,null,"discount factor for loss reserves",null,null,null,"% disc",0.82]
[]
[]
["Find","(a)","invested capital for given CY"]
[null,"(b)","present value or PV(future income)"]
[null,"(c)","would the shareholders prefer liquidation or continued operation of the company"]

{"sheet":"double_tax","index":3,"n_rows":28,"n_cols":7,"rows_kept":28,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Feldblum.Surplus"]
["Model:",null,"example in source reading"]
["Problem Type:",null,"premium margin required to offset double-taxation"]
[]
["Given",null,"An investor can directly purchase an investment with a yield of y. The investor can"]
["random",null,"alternately place his money in an insurance company and the insurance company"]
[null,null,"will purchase an investment also with a yield of y. This would be an indirect investment."]
[]
[null,null,"This indirect investment would be subject to double-taxation as explained in Feldblum's"]
[null,null,"surplus paper."]
[]
[null,null,"Assume there are no restrictions on the risk level of the insurer's investments."]
[]
[null,null,null,"investment yield",null,"y",0.05]
[null,null,null,"tax - personal",null,"TP",0.27]
[null,null,null,"tax - corporate",null,"TC",0.35]
[]
[null,null,"The investor wishes to invest an amount of capital equal to:"]
[]
[null,null,null,1.5,"  times the total policyholder premium"]
[]
[null,null,"Assume the premiums are paid at the beginning of the year and tax is not due until"]
[null,null,"the middle of the year."]
[]
[]
["Find",null,"Given the information above, what % margin must be added to the total policyholder"]
[null,null,"premium to compensate the investor for the double-taxation of the indirect investment"]
[null,null,"option."]

{"sheet":"taxes1","index":4,"n_rows":25,"n_cols":6,"rows_kept":25,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 26"]
["Model:",null,"2018.Spring #14"]
["Problem Type:",null,"tax-basis income"]
[]
["Given",null,"policy effective date",null,"Jan 1, CY"]
["random",null,"loss date",null,"Dec 31, CY","<== reported & recorded on the same day"]
[null,null,"payment date",null,"Dec 31, CY+1","<== 1 year after loss occurred"]
[]
[null,null,"policy premium",null,3000,"    = EP  (assume this is on a SAP basis)"]
[null,null,"estimate of loss",null,2370,"    = L  (undiscounted)"]
[null,null,"investment rate",null,0.06,"    = i"]
[null,null,"IRS discount rate:",null,3.9999999999999994E-2,"    = d"]
[]
[null,null,"assume there is no UEP (Unearned Premium)"]
[null,null,"assume the policy is not renewed"]
[]
["Find",null,"tax-basis income for CY and CY+1"]
[]
[]
["Further",null,"TBI","Tax-Basis Income",null,"<== this is what we want to calculate"]
["Notation",null,"TBEP","Tax-Basis Earned Premium"]
[null,null,"InvInc","Investment Income"]
[null,null,"PL","Paid Loss (during year)"]
[null,null,"IL","Incurred Loss (during year)"]
[null,null,"LD","Losses after Discounting"]

{"sheet":"taxes2","index":5,"n_rows":25,"n_cols":9,"rows_kept":25,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 26"]
["Model:",null,"2017.Fall #21"]
["Problem Type:",null,"income tax (includes calculating tax-basis income)"]
[]
["Given",null,null,null,null,null,null,"CY","CY-1"]
["random",null,"written premium",null,null,null,"WP",399,374]
[null,null,"unearned premium",null,null,null,"UEP",72,57]
[null,null,"paid loss",null,null,null,"PL",223,221]
[null,null,"loss reserves (undiscounted)",null,null,null,"LU",108,96]
[null,null,"loss reserves (discounted)",null,null,null,"LD",99,79]
[null,null,"interest on tax-exemplt municipal bonds",null,null,null,"B",20,26]
[null,null,"dividend income",null,null,null,"D",440,372]
[]
[null,null,"corporate tax rate:",null,null,null,null,0.35]
[null,null,"ownership of dividend-paying corporation:",null,null,null,null,0.9]
[]
[]
["Find",null,"income tax for CY"]
[]
[]
["Other"]
["Notation",null,"RTI","= Regular Taxable Income (same as TBI, Tax-Basis Income)"]
[null,null,"RIT","= Regular Income Tax"]
[null,null,"AMTI","= Alternative Minimum Taxable Income"]
[null,null,"AMIT","= Alternative Minimum Income Tax"]

{"sheet":"taxes3","index":6,"n_rows":25,"n_cols":5,"rows_kept":25,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 26"]
["Model:",null,"part of 2016.Spring #18"]
["Problem Type:",null,"calculating the company discount factor"]
[]
["Given",null,"From Schedule P - Part of the AY/CY Annual Statement"]
["random"]
[null,null,null,"loss & LAE","loss & LAE"]
[null,null,"AY","paid","incurred"]
[null,null,"AY-9"]
[null,null,"AY-8"]
[null,null,"AY-7"]
[null,null,"AY-6"]
[null,null,"AY-5"]
[null,null,"AY-4",2300,2400]
[null,null,"AY-3",3200,4100]
[null,null,"AY-2",3200,5700]
[null,null,"AY-1",2600,6800]
[null,null,"AY",1300,7400]
[]
[null,null,"discnt rate for AY+2",null,0.06]
[]
["Find",null,"discount factor for AY+2"]
[]
["Note:",null,"If there is no data for an AY, assume the company wasn't in operation"]
[null,null,"for that AY."]

{"sheet":"goodwill","index":7,"n_rows":31,"n_cols":8,"rows_kept":31,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 22/23"]
["Model:",null,"2016.Fall #18"]
["Problem Type:",null,"GAAP goodwill using cost-of-capital approach"]
[]
["Given",null,"Amounts at time of acquisition at CY"]
["random",null,"FV(assets)",null,null,null,430]
[null,null,"U.S. GAAP assets",null,null,null,430]
[null,null,"FV(liabilities) other than loss & LAE",null,null,null,100]
[null,null,"purchase price",null,null,null,61]
[]
[null,null,"nominal future cash flows of liabilities"]
[null,null,"CY","paid during year",null,null,140]
[null,null,"CY + 1","paid during year",null,null,90]
[null,null,"CY + 2","paid during year",null,null,20]
[null,null,"> CY + 2","paid during year",null,null,0]
[]
[null,null,"some more junk you'll need"]
[null,null,"pre-tax cost-of-capital",null,null,0.12]
[null,null,"risk-free rate",null,null,0.02]
[null,null,"illiquidity premium",null,null,0.02]
[]
[null,null,"still more junk you'll need:"]
[]
[null,null,"  loss & LAE payments are made mid-year",null,null,null,null,"<== use 0.5, 1.5, 2.5,... to discount"]
[null,null,"  return on capital is paid to investores at year-end",null,null,null,null,"<== use 1, 2, 3,… to discount"]
[]
[null,null,"  required capital @ year-end = unpaid x",null,null,null,0.5]
[null,null,"    (stated slightly differently from exam problem - this is done so that my solution"]
[null,null,"     fits the risk-adjustment formula from Odomirok)"]
[]
["Find",null,"value of purchaser's GAAP goodwill using the cost-of-capital approach"]

{"sheet":"SAP-assets","index":8,"n_rows":22,"n_cols":8,"rows_kept":22,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 22/23"]
["Model:",null,"2016.Spring #15a"]
["Problem Type:",null,"SAP admitted assets"]
[]
["Given",null,"Year-end balances:"]
["random"]
[null,null,"agents' balances < 90 days past due",null,null,null,null,3500]
[null,null,"agents' balances > 90 days past due",null,null,null,null,1400]
[null,null,"NAIC Class 2 bond, amortized cost",null,null,null,null,30000]
[null,null,"NAIC Class 2 bond, fair value",null,null,null,null,24900]
[null,null,"NAIC Class 3 bond, amortized cost",null,null,null,null,54000]
[null,null,"NAIC Class 3 bond, fair value",null,null,null,null,44300]
[null,null,"cash & cash equivalents",null,null,null,null,51000]
[null,null,"DAC",null,null,null,null,1200]
[null,null,"net UEP",null,null,null,null,50000]
[null,null,"high-deductible unpaid loss below deductible",null,null,null,null,15000]
[null,null,"DTA (this and DTL would not appear together)",null,null,null,null,5000]
[null,null,"DTL (this and DTL would not appear together)",null,null,null,null,2700]
[]
[]
[]
["Find",null,"SAP net admitted assets"]

{"sheet":"SAP-liabs","index":9,"n_rows":20,"n_cols":9,"rows_kept":20,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 22/23"]
["Model:",null,"2016.Spring #15b"]
["Problem Type:",null,"SAP liabilities"]
[]
["Given",null,"item",null,null,null,null,"CY/AY-1","CY/AY"]
["random",null,"unpaid loss: Case direct & assumed",null,null,null,null,11000,13800]
[null,null,"unpaid loss: Case ceded",null,null,null,null,1400,1500]
[null,null,"unpaid loss: Bulk & IBNR direct & assumed",null,null,null,null,13400,19900]
[null,null,"unpaid loss: Bulk & IBNR ceded",null,null,null,null,900,2500]
[null,null,"unpaid DCC: Case direct & assumed",null,null,null,null,2600,2900]
[null,null,"unpaid DCC: Case ceded",null,null,null,null,600,300]
[null,null,"unpaid DCC: Bulk & IBNR direct & assumed",null,null,null,null,3700,5000]
[null,null,"unpaid DCC: Bulk & IBNR ceded",null,null,null,null,200,700]
[null,null,"unpaid A&O: direct & assumed",null,null,null,null,1100,1900]
[null,null,"unpaid A&O: ceded",null,null,null,null,10,30]
[null,null,"anticipated salvage & subrogation",null,null,null,null,1400,1800]
[null,null,"net UEP",null,null,null,null,"n/a",64900]
[]
[]
["Find",null,"SAP liabilities"]

{"sheet":"IS1","index":10,"n_rows":26,"n_cols":10,"rows_kept":26,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 8/9"]
["Model:",null,"2018.Spring #10"]
["Problem Type:",null,"statutory net income (version 1)"]
[]
["Given",null,"CY written premium (year x)",null,null,null,null,88600]
["random",null,"CY earned premium (year x)",null,null,null,null,84400,null,"check"]
[null,null,"AY ultimate loss (year x)",null,null,null,null,66000,null,0.77014218009478674]
[null,null,"change in AY ultimate loss (year x-1 & prior)",null,null,null,null,-1000]
[]
[null,null,null,null,null,"other U/W","investment"]
[null,null,null,null,"LAE","expense","expense","TOTAL",null,"check"]
[null,null,"expenses incurred",null,3544.8,7511.5999999999995,422,11478.4,null,4.2000000000000003E-2]
[null,null,"expenses paid",null,3473.9040000000005,8262.7599999999984,506.40000000000003,-100,null,8.8999999999999996E-2]
[]
[]
[null,null,"net investment income earned",null,null,null,null,6752]
[null,null,"net realized capital gains",null,null,null,null,143.47999999999999]
[null,null,"net unrealized capital gains",null,null,null,null,10.128]
[null,null,"net gain from agents' or premium balances charged off",null,null,null,null,12.659999999999998]
[null,null,"finance & service charges not in premiums",null,null,null,null,15.192]
[null,null,"aggregate write-ins for miscellaneous income",null,null,null,null,10.972]
[null,null,"dividends to policyholders",null,null,null,null,122.38]
[null,null,"dividends to stockholders",null,null,null,null,903.07999999999993]
[]
[]
["Find",null,"statutory net income"]

{"sheet":"IS2","index":11,"n_rows":31,"n_cols":9,"rows_kept":31,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 8/9"]
["Model:",null,"2017.Fall #10"]
["Problem Type:",null,"policyholder's surplus"]
[]
["Given",null,null,"item",null,null,null,2017,2016]
["random",null,"A","policyholder's surplus",null,null,null,null,4150]
[null,null,"B","NWP",null,null,null,3990,3060]
[null,null,"C","NEP",null,null,null,3200,2400]
[null,null,"D","incurred losses",null,null,null,2440,1410]
[null,null,"E","LAE",null,null,null,550,310]
[null,null,"F","other U/W expenses",null,null,null,710,660]
[null,null,"G","net investment income earned",null,null,null,360,330]
[null,null,"H","net realized capital gains less tax",null,null,null,70,40]
[null,null,"I","net unrealized capital gains less tax",null,null,null,440,550]
[null,null,"J","other income",null,null,null,40,80]
[null,null,"K","dividends to policyholders",null,null,null,40,40]
[null,null,"L","dividends to stockholders",null,null,null,150,110]
[null,null,"M","federal & foreign taxes",null,null,null,40,0]
[null,null,"N","net deferred income tax",null,null,null,160,160]
[null,null,"O","provision for reinsurance",null,null,null,40,70]
[null,null,"P","total assets",null,null,null,5780,4790]
[null,null,"Q","non-admitted assets",null,null,null,690,400]
[]
[]
["Find",null,"current year's policyholder's surplus"]
[]
["Hint:",null,"It helps to figure out which items in the table count as income and which items"]
[null,null,"count as direct charges to surplus."]
[]
[null,null,"That's because direct charges to surplus are treated differently. They do not flow"]
[null,null,"through the income statement on their way to surplus. They go directly to surplus."]

{"sheet":"IS3","index":12,"n_rows":32,"n_cols":8,"rows_kept":32,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 8/9"]
["Model:",null,"2017.Spring #9"]
["Problem Type:",null,"statutory net income (version 2)"]
[]
["Given",null,"Liabilities, Surplus, and Other Funds",null,null,null,"current","prior"]
["random",null,null,null,null,null,"year","year"]
[null,null,"* provision for reinsurance",null,null,null,359,387]
[null,null,"surplus notes",null,null,null,105,100]
[null,null,"gross paid-in & contributed surplus",null,null,null,7600,900]
[null,null,"PH surplus",null,null,null,69350,42450]
[]
[null,null,null,null,"current","prior"]
[null,null,null,null,"year","year","* change"]
[null,null,"Nonadmitted Assets",null,733,495,-238]
[]
[null,null,null,"* change = - [ (current year) - (prior year) ]"]
[]
[null,null,"Capital Gains/Losses"]
[null,null,"realized gains on sales/maturity",null,null,null,53]
[null,null,"other realized adjustments",null,null,null,1]
[null,null,"    total capital gain",null,null,null,54]
[null,null,"* change in unrealized capital gain",null,null,null,21]
[null,null,"* change in unrealized foreign exchange",null,null,null,-10]
[]
[null,null,null,"* change = + [ (current year) - (prior year) ]"]
[]
[null,null,"dividends to policyholders",null,null,null,null,40]
[null,null,"dividends to stockholders",null,null,null,null,2670]
[null,null,"cumulative effect of accounting principle change",null,null,null,null,1000]
[]
[]
["Find",null,"statutory net income"]

{"sheet":"alsuioc","index":13,"n_rows":59,"n_cols":4,"rows_kept":59,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok"]
["Model:",null,"original"]
["Problem Type:",null,"locating items in B/S and I/S"]
[]
["Given",null,"item"]
["random",null,"36.1 Less treasury stock, at cost: shares common (value included in Line 30)"]
[null,null,"4.1 Real estate: Properties occupied by the company (less $ encumbrances)"]
[null,null,"21. Payable for securities"]
[null,null,"4.1 Real estate: Properties occupied by the company (less $ encumbrances)"]
[null,null,"10. Net realized capital gains (losses) less capital gains tax (Exhibit of Capital Gains (Losses))"]
[null,null,"15. Remittances and items not allocated"]
[null,null,"33. Surplus adjustments:"]
[null,null,"15.3 Premiums and considerations: Accrued retrospective premiums ($ ) and contracts subject to redetermination"]
[null,null,"9. Net investment income earned (Exhibit of Net Investment Income, Line 17)"]
[null,null,"2502. Other liabilities"]
[]
[]
["Find",null,"Indicate the location of each item using the following letters:"]
[]
[null,null,"a","B/S: asset side"]
[null,null,"l","B/S: liability side (liability item)"]
[null,null,"s","B/S: liability side (surplus item)"]
[null,null,"d","B/S exhibit: details of write-ins"]
[null,null,"u","I/S exhibit: U/W income"]
[null,null,"i","I/S exhibit: investment income"]
[null,null,"o","I/S exhibit: other income"]
[null,null,"c","I/S exhibit: capital & surplus account"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[null,null,{"$f":"SEARCH(\" \",C62)","v":{"$error":"#VALUE!"}}]

{"sheet":"17F.11","index":14,"n_rows":31,"n_cols":8,"rows_kept":31,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 15"]
["Model:",null,"2017.Fall #11"]
["Problem Type:",null,"Schedule P"]
[]
["Given",null,"Sch. P, Part 2 - Incurred Net Loss & DCC Expense Reported at Year-End"]
["random",null,"AY",2012,2013,2014,2015,2016]
[null,null,2012,1000,1100,1400,1200,1200]
[null,null,2013,null,1700,2800,3100,3100]
[null,null,2014,null,null,3600,2900,2600]
[null,null,2015,null,null,null,2900,3100]
[null,null,2016,null,null,null,null,3500]
[]
[null,null,"Sch. P, Part 3 - Cumulative Paid Net Loss & DCC Reported at Year-End"]
[null,null,"AY",2012,2013,2014,2015,2016]
[null,null,2012,180,580,1130,1180,1180]
[null,null,2013,null,410,1530,2270,2540]
[null,null,2014,null,null,1190,1550,2180]
[null,null,2015,null,null,null,1130,2260]
[null,null,2016,null,null,null,null,1750]
[]
[null,null,"Sch. P, Part 4 - Bulk & IBNR Reserves on Net Loss & DCC Reported at Year-End"]
[null,null,"AY",2012,2013,2014,2015,2016]
[null,null,2012,540,260,130,10,0]
[null,null,2013,null,920,570,220,150]
[null,null,2014,null,null,1700,580,130]
[null,null,2015,null,null,null,1600,280]
[null,null,2016,null,null,null,null,1470]
[]
[]
["Find","(a)","Calendar year 2016 case incurred net loss & DCC expense"]
[null,"(b)","Calendar year 2016 paid net loss & DCC expense"]

{"sheet":"17F.13","index":15,"n_rows":14,"n_cols":6,"rows_kept":14,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 8/9"]
["Model:",null,"2017.Fall #13"]
["Problem Type:",null,"carrying value of bonds under SAP"]
[]
["Given",null,"Assume an insurer owns the following BOND portfolio:"]
["random"]
[null,null,null,"Amortized","Fair","Actual"]
[null,null,"NAIC Rating","Cost","Value","Cost"]
[null,null,1,10000,8600,9500]
[null,null,3,37600,35700,33800]
[null,null,6,3800,4300,3300]
[]
[]
["Find",null,"total adjusted carrying value of BONDS under SAP"]

{"sheet":"17F.14","index":16,"n_rows":34,"n_cols":10,"rows_kept":34,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok - Chapter 14"]
["Model:",null,"2017.Fall #14"]
["Problem Type:",null,"restating balance sheet"]
[]
["Given",null,"ceded loss & LAE reserves (Schedule P, Part 1 Summ., Cols 14+16+18+20+22)",null,null,null,null,null,null,1190]
["random",null,"ceded unearned premium reserves (Schedule F, Part 3, Column 13)",null,null,null,null,null,null,90]
[]
[null,null,"Schedule F, Part 9 for year 2016   (figures in 000's)"]
[]
[null,null,null,null,null,null,null,null,null,"net of "]
[null,null,null,"Assets",null,null,null,null,null,"ceded"]
[null,null,1,"cash & invested assets",null,null,null,null,null,4390]
[null,null,2,"premiums & considerations",null,null,null,null,null,400]
[null,null,3,"reinsurance recoverables on loss & LAE payments",null,null,null,null,null,220]
[null,null,4,"funds held by OR deposited with reinsured companies",null,null,null,null,null,660]
[null,null,5,"other assets",null,null,null,null,null,180]
[null,null,6,"net recoverable from reinsurers",null,null,null,null,null,90]
[null,null,7,"TOTAL",null,null,null,null,null,5940]
[]
[null,null,null,null,null,null,null,null,null,"net of "]
[null,null,null,"Liabilities",null,null,null,null,null,"ceded"]
[null,null,8,"losses & LAE",null,null,null,null,null,2200]
[null,null,9,"unearned premiums",null,null,null,null,null,570]
[null,null,10,"advance premiums",null,null,null,null,null,90]
[null,null,11,"dividends declared & unpaid",null,null,null,null,null,400]
[null,null,12,"ceded reinsurance premiums payable",null,null,null,null,null,180]
[null,null,13,"funds held by company under reinsurance treaties",null,null,null,null,null,440]
[null,null,14,"provision for reinsurance",null,null,null,null,null,350]
[null,null,15,"TOTAL LIABILITIES",null,null,null,null,null,4230]
[null,null,16,"SURPLUS",null,null,null,null,null,1710]
[null,null,17,"TOTAL",null,null,null,null,null,5940]
[]
[]
["Find",null,"restate the balance sheet to a gross of ceded basis"]

{"sheet":"17F.27b","index":17,"n_rows":30,"n_cols":8,"rows_kept":30,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Klann.ReinsComm"]
["Model:",null,"2017.Fall #27b"]
["Problem Type:",null,"restate triangles after commutation"]
[]
["Given",null,"Primary Insurer"]
["random",null,"Ceded Paid Losses without Commutation",null,null,null,null,"In the exam problem, PY = 2016"]
[null,null,"policy year",12,24,36]
[null,null,"PY-2",900,1190,1210]
[null,null,"PY-1",1000,1270]
[null,null,"PY",1100]
[]
[null,null,"Primary Insurer"]
[null,null,"Net Reserves without Commutation"]
[null,null,"policy year",12,24,36]
[null,null,"PY-2",1400,1030,710]
[null,null,"PY-1",500,400]
[null,null,"PY",1500]
[]
[null,null,"quota-share %",null,0.65]
[null,null,"commutation price:",null,500]
[]
["Problem",null,"The insurer has decided to commute this contract for PY-2 within the latest calendar year."]
[]
[null,null,"i","Restate the primary insurer's net paid loss triangle after commutation."]
[null,null,"ii","Restate the primary insurer's net ultimate loss triangle after commutation."]
[]
["Hint 1:",null,"State the desired triangles without commutation, then make the appropriate adjustments."]
[]
["Hint 2:",null,"Identify that cells in the triangle that are impacted by the commutation:"]
[null,null," ==> the only cell that is impacted is PY-2 & 36 months"]

{"sheet":"RBC(ratio)","index":18,"n_rows":17,"n_cols":6,"rows_kept":17,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.19-RBC"]
["Model:",null,"Basic RBC problem"]
["Problem Type:",null,"Calculating the RBC ratio"]
[]
["Given",null,"company net loss & LAE ratio",null,null,0.75]
["random",null,"company expense ratio",null,null,0.35]
[null,null,"policyholder dividend ratio",null,null,9.9999999999999867E-2]
[null,null,"Total Adjusted Capital",null,null,15000]
[null,null,"R0 charge",null,null,40]
[null,null,"R1 charge",null,null,900]
[null,null,"R2 charge",null,null,1700]
[null,null,"R3 charge",null,null,500]
[null,null,"R4 charge",null,null,11200]
[null,null,"R5 charge",null,null,2100]
[]
[]
["Formulas"]

{"sheet":"RBC(charge)","index":19,"n_rows":41,"n_cols":8,"rows_kept":41,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.19-RBC"]
["Model:",null,"2017.Spring #19"]
["Problem Type:",null,"Calculating the RBC charges (not the ratio)"]
[]
["Given",null,"item",null,null,null,null,"RBC charge"]
["random",null,"Investment income due and accrued",null,null,null,null,2500]
[null,null,"Federal income tax recoverable",null,null,null,null,4300]
[null,null,"Recoverable from parent, subsidiaries, or affiliates",null,null,null,null,7300]
[null,null,"Reinsurance recoverable",null,null,null,null,7900]
[null,null,"Reserve",null,null,null,null,58300]
[null,null,"Written premium",null,null,null,null,39000]
[null,null,"Cash and cash equivalents",null,null,null,null,7600]
[null,null,"Unaffiliated bond",null,null,null,null,13500]
[null,null,"Unaffiliated stocks",null,null,null,null,17800]
[null,null,"Real estate",null,null,null,null,4500]
[null,null,"Asset concentration",null,null,null,null,11300]
[null,null,"Other non-insurance subsidiaries",null,null,null,null,16400]
[null,null,"Investments in insurance affiliates",null,null,null,null,700]
[]
[null,null,"Non-Tabular Discount",null,null,null,null,15200]
[null,null,"Tabular Discount in Reserves",null,null,null,null,4400]
[]
["Find","(a)","RBC total risk charge"]
[null,"(b)","range of surplus corresponding to RAL (Regulatory Action Level)"]
[]
["Note",null,"This question was ambiguous and many different solutions were accepted. My"]
[null,null,"answer corresponds to Sample Answer 2 because that seemed the simplest. (It might be"]
[null,null,"helpful also to spend a moment looking over the answers in the examiner's report.)"]
[]
["Concept",null,"You just have to figure out which risk category each RBC charge goes into. Then apply"]
[null,null,"the basic formula for the RBC charge."]
[]
["Concept",null,"It's straightforward except for 3 items:"]
[]
[null,null,"i","Reinsurance recoverable is split 50/50 between R3 and R4."]
[null,null,"ii","Asset concentration factor can be split in any proportion between R1 and R2."]
[null,null,null,"(I chose 100% for R2.)"]
[null,null,"iii","Other non-insurance subsidiaries can go into either R1 or R2, depending on"]
[null,null,null,"whether it is considered a fixed-income or equity investment."]
[]
["RBC Ratio",null,"You cannot calculate the RBC Ratio because they don't provide TAC (Total Adjusted Capital)"]

{"sheet":"RBC(1a)","index":20,"n_rows":37,"n_cols":9,"rows_kept":37,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.19-RBC"]
["Model:",null,"2015.Fall #17"]
["Problem Type:",null,"Calculate RBC charge R1."]
[]
["Given",null,null,null,null,"Assets",null,"Notation"]
["random",null,null,"Unaffiliated","Unaffiliated","subject to",null,"basic","basic R1 charge"]
[null,null,null,"Bonds NAIC","Common","Asset",null,"BSC","Bond Size Charge"]
[null,null,"#","Class 02","Stock","Concentration",null,"    BSF","    Bond Size Factor"]
[null,null,1,0,28000,28000,null,"ACC","Asset Contentration Charge"]
[null,null,2,20200,0,20200,null,"    R1   =","basic + BSC + ACC"]
[null,null,3,16800,0,16800]
[null,null,4,0,12800,12800]
[null,null,5,10200,0,10200]
[null,null,6,5100,0,5100]
[null,null,7,1500,1100,2600]
[null,null,8,0,2100,2100]
[null,null,9,0,1400,1400]
[null,null,10,0,700,700]
[null,null,11,0,500,500]
[null,null,12,500,0,500]
[null,null,null,54300,46600,100900,"  * Issuers are sorted from largest to smallest."]
[]
[null,null,"Bond Size Adjustment Factor WEIGHTS"]
[]
[null,null,null,"bond count","# issuers","weights","  * BSF = sumproduct(issuers, weights) / sum(issuers)"]
[null,null,null,"1-50",12,2.5]
[null,null,null,"51-100",0,1.3]
[null,null,null,"101-400",0,1]
[null,null,null,"> 400",0,0.9]
[]
[null,null,"RBC Factors by Asset Category"]
[]
[null,null,null,"Asset Category",null,"RBC Factor"]
[null,null,null,"Unaffiliated Bonds Class 02",null,0.01]
[null,null,null,"Unaffiliated Common Stock",null,0.15]
[]
["Find",null,"Calculate the RBC charge R1."]

{"sheet":"RBC(1b)","index":21,"n_rows":45,"n_cols":9,"rows_kept":45,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.19-RBC"]
["Model:",null,"mixture of 2 examples from Odomirok text (tables 86, 87, 88)"]
["Problem Type:",null,"Calculate RBC charge R1."]
[]
["Given",null,"data for R1 calculation"]
["random",null,"item",null,null,"amount","RBC factor"]
[null,null,null,"cash & equivalents",null,1330,3.0000000000000001E-3]
[null,null,null,"other short-term investmemts",null,5730,3.0000000000000001E-3]
[null,null,null,"mortgage bonds",null,2050,0.05]
[null,null,null,"net admitted collateral loans",null,0,0.05]
[null,null,"bonds",null,null,"amount","RBC factor"]
[null,null,null,"U.S. government",null,66300,0]
[null,null,null,"Class 01 U.S. govt. bonds",null,0,3.0000000000000001E-3]
[null,null,null,"Class 01 non-govt bonds",null,385900,3.0000000000000001E-3]
[null,null,null,"Class 02 unaffiliated bonds",null,38300,0.01]
[null,null,null,"Class 03 unaffiliated bonds",null,6510,0.02]
[null,null,null,"Class 04 unaffiliated bonds",null,3500,4.4999999999999998E-2]
[null,null,null,"Class 05 unaffiliated bonds",null,860,0.1]
[null,null,null,"Class 06 unaffiliated bonds",null,420,0.3]
[]
[null,null,"# of bonds issuers",null,null,null,30]
[]
[null,null,"assets subject to asset concentration charge"]
[null,null,null,"fixed income investments",null,"equity investments"]
[null,null,null,null,null,"class 03"]
[null,null,null,"class 02",null,"unaffiliated","unaffiliated"]
[null,null,null,"unaffiliated","mortgage","preferred","common"]
[null,null,null,"bonds","bonds","stocks","stock","real estate","total *"]
[null,null,1,0,2433.3333333333335,0,2433.3333333333335,2433.3333333333335,7300]
[null,null,2,0,0,0,3600,3600,7200]
[null,null,3,0,3300,0,3300,0,6600]
[null,null,4,6000,0,0,0,0,6000]
[null,null,5,1500,0,0,1500,0,3000]
[null,null,6,2900,0,0,0,0,2900]
[null,null,7,750,0,750,0,0,1500]
[null,null,8,466.66666666666669,0,466.66666666666669,0,466.66666666666669,1400]
[null,null,9,0,0,1300,0,0,1300]
[null,null,10,0,1300,0,0,0,1300]
[null,null,11,433.33333333333331,0,433.33333333333331,0,433.33333333333331,1300]
[null,null,12,{"$f":"$I40*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I40*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I40*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I40*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I40*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"ROUND(I39*IF(RAND()<0.15,0.5,RANDBETWEEN(90,100)/100),-2)","v":1200}]
[null,null,13,{"$f":"$I41*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I41*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I41*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I41*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I41*#REF!/#REF!","v":{"$error":"#REF!"}},1100]
[null,null,14,{"$f":"$I42*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I42*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I42*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I42*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I42*#REF!/#REF!","v":{"$error":"#REF!"}},1100]
[null,null,15,{"$f":"$I43*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I43*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I43*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I43*#REF!/#REF!","v":{"$error":"#REF!"}},{"$f":"$I43*#REF!/#REF!","v":{"$error":"#REF!"}},1100]
[null,null,"total",{"$f":"SUM(D29:D43)","v":{"$error":"#REF!"}},{"$error":"#REF!"},{"$error":"#REF!"},{"$error":"#REF!"},{"$error":"#REF!"},44300]
[null,null,"* represents total assets subject to asset concentration charge"]

{"sheet":"RBC(1,2)","index":22,"n_rows":34,"n_cols":10,"rows_kept":34,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.19-RBC"]
["Model:",null,"n/a"]
["Problem Type:",null,"Calculate RBC charges R1 and R2"]
[]
["Given",null,"Fixed Income Assets"]
["random"]
[null,null,null,null,null,null,null,"amount issued by",null,"RBC"]
[null,null,null,"asset",null,null,"amount","TOP 10 issuer","# issuers","factor"]
[null,null,null,"cash & equivalents",null,null,880,0,0,3.0000000000000001E-3]
[null,null,null,"mortgage bonds",null,null,1300,300,14,0.05]
[null,null,null,"U.S. government",null,null,29300,23400,34,0]
[null,null,null,"class 01 unaffiliated bonds",null,null,180700,0,180,3.0000000000000001E-3]
[null,null,null,"class 02 unaffiliated bonds",null,null,31700,0,78,0.01]
[null,null,null,"class 03 unaffiliated bonds",null,null,0,0,0,0.02]
[null,null,null,"class 04 unaffiliated bonds",null,null,1500,900,28,4.4999999999999998E-2]
[null,null,null,"class 05 unaffiliated bonds",null,null,800,300,16,0.1]
[null,null,null,"class 06 unaffiliated bonds",null,null,600,500,8,0.3]
[]
[null,null,"Equity Assets"]
[]
[null,null,null,null,null,null,null,"amount issued by",null,"RBC"]
[null,null,null,"asset",null,null,"amount","TOP 10 issuer","# issuers","factor"]
[null,null,null,"other admitted unaff. common Stck.",null,null,3800,1500,"--",0.15]
[null,null,null,"Schedule BA assets",null,null,4300,2600,"--",0.2]
[null,null,null,"real estate",null,null,1200,200,"--",0.1]
[null,null,null,"class 01 unaffiliated Prfd. Stck.",null,null,110,0,"--",3.0000000000000001E-3]
[null,null,null,"class 02 unaffiliated Prfd. Stck.",null,null,0,0,"--",0.01]
[null,null,null,"class 03 unaffiliated Prfd. Stck.",null,null,140,0,"--",0.02]
[null,null,null,"class 04 unaffiliated Prfd. Stck.",null,null,230,50,"--",4.4999999999999998E-2]
[null,null,null,"class 05 unaffiliated Prfd. Stck.",null,null,130,50,"--",0.1]
[null,null,null,"class 06 unaffiliated Prfd. Stck.",null,null,0,0,"--",0.3]
[]
[]
["Hint",null,"Items highlighted in red are NOT subject to the ACC or BSF."]

{"sheet":"RBC(3)","index":23,"n_rows":22,"n_cols":10,"rows_kept":22,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.19-RBC"]
["Model:",null,"n/a"]
["Problem Type:",null,"Calculate the RBC charge for R3"]
[]
["Given",null,"Credit-Related Assets"]
["random"]
[null,null,"NON-INVESTED ASSETS",null,null,null,null,null,"amount","RBC factor"]
[null,null,null,"investment income due & accrued",null,null,null,null,0,0.01]
[null,null,null,"amounts receivable related to uninsured plans",null,null,null,null,0,0.05]
[null,null,null,"federal income tax recoverable",null,null,null,null,11000,0.05]
[null,null,null,"guaranty funds receivable or on deposit",null,null,null,null,0,0.05]
[null,null,null,"recoverable (parents/subs/affiliates)",null,null,null,null,3300,0.05]
[null,null,null,"aggregate write-ins for other than invested assets",null,null,null,null,2710,0.05]
[null,null,"REINSURANCE RECOVERABLES",null,null,null,null,null,"amount","RBC factor"]
[null,null,null,"amount subject to RBC (gross of reins provision)",null,null,null,null,29700,0.1]
[null,null,null,"provision for reinsurance (allocated)",null,null,null,null,800,"n/a"]
[]
[null,null,"* assume this P&C insurer has no health credit risk"]
[]
[null,null,"U/W risk (you need this to finish the R3 calculation)"]
[]
[null,null,"RBC charge for R4",null,null,null,null,3400]

{"sheet":"RBC(4)","index":24,"n_rows":28,"n_cols":9,"rows_kept":28,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.19-RBC"]
["Model:",null,"n/a"]
["Problem Type:",null,"Calculate RBC charge R4 (reserve risk)"]
[]
["Given",null,null,null,null,null,"Line of Business"]
["random"]
[]
[null,null,null,null,null,null,"LOB 1","LOB 2","LOB 3"]
[null,null,"industry average L+LAE LDF (9 prior AYs)",null,null,null,null,null,0.96199999999999997]
[null,null,"company average L+LAE LDF (9 prior AYs)",null,null,null,null,null,1.1200000000000001]
[null,null,"industry L+LAE RBC %",null,null,null,null,null,0.22]
[null,null,"adjustment for investment income",null,null,null,null,null,0.88]
[null,null,"company L+LAE Reserves (gross of NTD)",null,null,null,6300,11700,7000]
[null,null,"  (NTD = Non-Tabular Discount)"]
[null,null,"portion of reserves on retro-rated plan"]
[null,null,"    % direct loss-sensitive",null,null,null,null,null,0.06]
[null,null,"    % assumed loss-sensitive",null,null,null,null,null,0.02]
[null,null,"Reserve RBC charge after discounts",null,null,null,756,1170,"?"]
[]
[null,null,"Excessive Premium Growth Charge (add to total RBC)",null,null,null,null,null,208]
[null,null,"RBC for reinsurance recoverables (part of R3 calc)",null,null,null,null,null,56.440000000000005]
[]
[null,null,"Assume:"]
[null,null,"R4 >","  (RBC charge for NON-INVESTED ASSETS) + (1/2)x(RBC charge for reins recoverables)"]
[]
["Find",null,"Calculate the total R4 RBC charge for all 3 lines combined"]
[]
["TRICK",null,"Don't forget to add 1/2 of RBC for reinsurance recoverables at the very end."]

{"sheet":"RBC(5)","index":25,"n_rows":22,"n_cols":9,"rows_kept":22,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.19-RBC"]
["Model:",null,"2014.Fall #18"]
["Problem Type:",null,"Calculate RBC charge R5 (NWP risk)"]
[]
["Given",null,null,null,null,null,"Line of Business"]
["random",null,null,null,null,null,"Comm"]
[null,null,null,null,null,null,"Auto"]
[null,null,null,null,null,null,"Liab","G/L","WC"]
[null,null,"industry average L+LAE ratio (10 yrs)",null,null,null,null,null,1.032]
[null,null,"company average L+LAE ratio (10 yrs)",null,null,null,null,null,1.091]
[null,null,"industry L+LAE ratio",null,null,null,null,null,0.90700000000000003]
[null,null,"adjustment for investment income",null,null,null,null,null,0.83]
[null,null,"company NWP (current yr)",null,null,null,5400,11400,12500]
[null,null,"company U/W expense ratio (current yr)",null,null,null,null,null,0.35]
[null,null,"portion of reserves on retro-rated plan"]
[null,null,"    % direct loss-sensitive",null,null,null,null,null,0.1]
[null,null,"    % assumed loss-sensitive",null,null,null,null,null,0.04]
[null,null,"R5 RBC charge after discounts",null,null,null,594,1254,"?"]
[]
[null,null,"Excessive Premium Growth Charge (add to total RBC):",null,null,null,null,null,180]
[]
["Find",null,"Calculate the total R5 RBC charge for all 3 lines combined"]

{"sheet":"17S.13","index":26,"n_rows":33,"n_cols":8,"rows_kept":33,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.15-P"]
["Model:",null,"Text Example of Intercompany Pooling from p186 (similar to 2017.Spring #13ab)"]
["Problem Type:",null,"Schedule P (& non-Schedule P) losses & premiums for INTERCOMPANY POOLING"]
[]
["Given",null,"In this problem, net refers to amounts net of outside reinsurance"]
["random",null,"(versus net of internally ceded amounts based on pool %)"]
[]
[null,null,null,null,null,"ceded to"]
[null,null,null,null,"direct","outside","net"]
[null,null,"company","pool %","loss & LAE","insurers","loss & LAE"]
[null,null,"A (lead)",0.5,700,0,700]
[null,null,"B",0.2,340,0,340]
[null,null,"C",0.30000000000000004,170,0,170]
[null,null,"total",1,1210,0,1210]
[]
[null,null,null,null,null,null,"no cession to outside reinsurers"]
["Find",null,"(a)","Schedule P gross reserves"]
[null,null,"(b)","Schedule P net reserves"]
[null,null,"(c)","non-Schedule P gross reserves"]
[null,null,"(d)","non-Schedule P net reserves"]
[]
["Concept","*","It doesn't matter whether you're dealing with losses or premiums."]
[null,"*","The key is whether it's a Schedule P exhibit or a non-Schedule P exhibit"]
[]
["Schedule P:",null,"GROSS reserves for each company:",null,null,"  (total direct loss & LAE) x (pool %)"]
[null,null,"NET reserves for each company:",null,null,"  (total net loss & LAE) x (pool %)"]
[]
["non-Schedule P:",null,"GROSS reserves for each company:"]
[null,null,"A (lead):","  A (direct) + B (net) + C (net)"]
[null,null,"B (non-lead):","  B (direct) + (total net) x (B pool %)",null,null,null,"<-- this one is tricky"]
[null,null,"C (non-lead):","  C (direct) + (total net) x (C pool %)",null,null,null,"<-- this one is tricky"]
[]
[null,null,"NET reserves for each company:",null,null,"  same as for Schedule P"]

{"sheet":"17S.26-easy","index":27,"n_rows":28,"n_cols":9,"rows_kept":28,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Klann.ReinsComm"]
["Model:",null,"2017.Spring #26b"]
["Problem Type:",null,"change in taxable income - easy version"]
[]
["Given",null,"The following pertains to a reinsurance contract that was commuted:"]
["random"]
[null,null,"quota-share percentage",null,null,null,0.35]
[null,null,"primary insurer RESERVE direct (gross)",null,null,null,1110000,"=","pR-gross"]
[]
[null,null,"discount factor for primary insurer",null,null,null,0.88]
[null,null,"discount factor for reinsurer",null,null,null,0.89]
[]
[null,null,"REINSURER'S carried loss reserves (prior to commutation)"]
[null,null,"are higher than the INSURED'S carried reserves by:",null,null,null,null,-0.01]
[]
[null,null,"commutation price",null,446876.5]
[]
[]
["Find",null,"change in taxable income for both insurer and reinsurer due to the commutation"]
[]
["Notation",null,"price","=","commutation price"]
[null,null,"pR-ceded","=","CEDED carried reserve for primary insurer"]
[null,null,"reR-gross","=","GROSS carried reserve for reinsurer"]
[null,null,"d1","=","discount factor for primary insurer"]
[null,null,"d2","=","discount factor for reinsurer"]
[]
["Formulas",null,"change in taxable income for primary insurer",null,null,null,null,"=","price - (pR-ceded) x d1"]
[null,null,"change in taxable income for reinsurer",null,null,null,null,"=","(reR-gross) x d2 - price"]

{"sheet":"17S.26","index":28,"n_rows":28,"n_cols":9,"rows_kept":28,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Klann.ReinsComm"]
["Model:",null,"2017.Spring #26b"]
["Problem Type:",null,"change in taxable income"]
[]
["Given",null,"The following pertains to a reinsurance contract that was commuted:"]
["random"]
[null,null,"quota-share percentage",null,null,null,0.25]
[null,null,"primary insurer RESERVE direct(net)",null,null,null,940000,"=","pR-gross"]
[null,null,"primary insurer ULTIMATE direct(net)",null,null,null,1540000,"=","pU-gross"]
[null,null,"discount factor for primary insurer",null,null,null,0.87]
[null,null,"discount factor for reinsurer",null,null,null,0.89]
[]
[null,null,"REINSURER'S carried loss reserves (prior to commutation)"]
[null,null,"are higher than the INSURED'S carried reserves by:",null,null,null,null,0.08]
[]
[null,null,"REINSURER'S ultimate loss, as a result of"]
[null,null,"commutation, increased by:",null,null,0.16]
[]
["Find",null,"change in taxable income for both insurer and reinsurer"]
[]
["Notation",null,"P","=","commutation price"]
[null,null,"pR-ceded","=","CEDED carried reserve for primary insurer"]
[null,null,"reR-gross","=","GROSS carried reserve for reinsurer"]
[null,null,"d1","=","discount factor for primary insurer"]
[null,null,"d2","=","discount factor for reinsurer"]
[]
["Formulas",null,"change in taxable income for primary insurer",null,null,null,null,"=","price - (pR-ceded) x d1"]
[null,null,"change in taxable income for reinsurer",null,null,null,null,"=","(reR-gross) x d2 - price"]

{"sheet":"16S.27","index":29,"n_rows":22,"n_cols":8,"rows_kept":22,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Klann.ReinsComm"]
["Model:",null,"2016.Spring #27"]
["Problem Type:",null,"mutually beneficial commutation price"]
[]
["Given",null,"gross paid loss",null,null,null,4.0999999999999996]
["random",null,"gross reserves (case + IBNR)",null,null,null,4.5999999999999996]
[null,null,"gross discounted reserves (case + IBNR)",null,null,null,3.4," <== economic discount"]
[null,null,"ceded paid loss",null,null,null,0.7]
[null,null,"ceded  reserves (case + IBNR)",null,null,null,3]
[null,null,"ceded discounted reserves (case + IBNR)",null,null,null,1.5," <== economic discount"]
[]
[null,null,"The following discount factors are for tax purposes:"]
[]
[null,null,null,null,null,"primary"]
[null,null,null,null,null,"insurer","reinsurer"]
[null,null,"average discount factor",null,null,0.82,0.85," <== for statutory discounting"]
[null,null,"tax rate",null,null,0.31,0.18]
[]
[null,null,"The reinsurer's assumed losses equal the primary insurer's ceded losses"]
[]
[]
["Calculate",null,"range of the mutually beneficial commutation price (if possible)"]

{"sheet":"10-10","index":30,"n_rows":21,"n_cols":8,"rows_kept":21,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Freihaut.Reins"]
["Model:",null,"none"]
["Problem Type:",null,"10-10 rule for assessing risk transfer"]
[]
["Given",null,"type of treaty:",null,"excess-of-loss"]
["random",null,"primary retention:",null,9,"million"]
[null,null,"excess coverage:",null,8,"million beyond retention"]
[null,null,"discount rate:",null,0.04]
[]
[null,null,"reinsurance premium",null,null,3.2,"million","* premiums are paid at start of year"]
[null,null,"losses paid in full after:",null,null,3,"years","* not a predetermined payment schedule"]
[]
[null,null,"CDF (Cumulative Probability Distribution) for primary insurer losses:"]
[]
[null,null,null,"prob.","gross loss"]
[null,null,null,0.9,15]
[null,null,null,0.95,23]
[null,null,null,0.99,64]
[]
[]
["Find",null,"Use the 10-10 rule for risk transfer to assess whether risk transfer has occurred."]

{"sheet":"IEE.SA","index":31,"n_rows":18,"n_cols":8,"rows_kept":18,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.18-IEE"]
["Model:",null,"2015.Fall #13"]
["Problem Type:",null,"Allocation of surplus to line of business"]
[]
["Given",null,"All LOBs",null,null,"notation","prior CY","current CY"]
["random",null,"policyholders' surplus",null,null,"S",10000,11900]
[null,null,"  net loss & LAE reserve",null,null,"L + LAE",18900,23600]
[null,null,"  net UEP reserve",null,null,"UEP",5400,7000]
[null,null,"  net EP",null,null,"NEP",8800,10740]
[]
[]
[null,null,"Commercial Auto",null,null,"notation","prior CY","current CY"]
[null,null,"  net loss & LAE reserve",null,null,"(L + LAE)C",1100,1270]
[null,null,"  net UEP reserve",null,null,"UEPC",2100,2480]
[null,null,"  net EP",null,null,"NEPC",4600,5430]
[]
[]
["Find",null,"calculate the surplus allocation to commercial auto for the current CY"]

{"sheet":"IEE.TIA","index":32,"n_rows":17,"n_cols":8,"rows_kept":17,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.18-IEE"]
["Model:",null,"not based on an exam problem"]
["Problem Type:",null,"Calculation of basic IEE quantities: FAIT & TIA"]
[]
["Given",null,null,null,null,null,"prior CY","current CY"]
["random",null,"Financial Statement Item",null,null,"notation","all lines","all lines"]
[null,null,"PH surplus",null,null,"S",15000,18300]
[null,null,"net loss & LAE reserve",null,null,"L",21500,28000]
[null,null,"net UEP reserve",null,null,"UEP",6300,6900]
[null,null,"net EP",null,null,"NEP",14100,14950]
[null,null,"ceded reins. premium payable",null,null,"re",1720,2050]
[null,null,"agents' balances",null,null,"AB",1130,1390]
[]
[null,null,"PrePaid Expense Ratio (PPER)",null,null,0.36]
[]
[]
["Find:",null,"TIA & FAIT  (Total Investable Assets & Funds Attributable to Insurance Transactions)"]

{"sheet":"IEE.PL","index":33,"n_rows":27,"n_cols":11,"rows_kept":27,"cut":false,"hidden":false,"merged":[]}
["Reading:",null,"Odomirok.18-IEE"]
["Model:",null,"2015.Spring #13"]
["Problem Type:",null,"Pre-tax profit (loss)"]
[]
["Given",null,null,null,null,null,null,"prior CY","current CY"]
["random",null,"TOTAL net investmemt earned",null,null,null,"Inv",1800,3200]
[null,null,"TOTAL net realized capital gains",null,null,null,"CapG",17900,21100]
[null,null,"TOTAL policyholders' surplus",null,null,null,"S",136800,132700]
[null,null,"HOMEOWNERS total investment gain",null,null,null,"NIGH",10200,9200]
[]
[null,null,null,null,null,null,null,"homeowners",null,"TOTAL"]
[null,null,null,null,null,null,null,"prior CY","current CY","prior CY","current CY"]
[null,null,"commission",null,null,null,"C",13900,13200,24300,26100]
[null,null,"taxes, licenses, fees",null,null,null,"TLF",1500,1500,2900,3300]
[null,null,"other acquisition expenses",null,null,null,"Other",2800,3600,7500,6500]
[null,null,"general expenses",null,null,null,"Gen",4600,6500,9500,12200]
[null,null,"written premium",null,null,null,"WP",58000,64700,155600,153600]
[null,null,"earned premium",null,null,null,"EP",61100,74400,132400,124700]
[null,null,"loss & LAE reserves",null,null,null,"L + LAE",28400,31600,52500,50400]
[null,null,"unearned premium reserves",null,null,null,"UEP",27500,26500,54100,54100]
[null,null,"agents' balances",null,null,null,"AB",5900,6500,12900,15000]
[null,null,"net loss & LAE incurred",null,null,null,"IL",43200,38600,87500,72500]
[null,null,"finance charges not included in premium",null,null,null,"charges",1800,2100,4700,5000]
[null,null,"fine & penalties of regulatory authorities",null,null,null,"penalties",600,800,1100,1500]
[]
[]
["Find",null,"Current CY pre-tax profit (loss) as a percentage of policyholders' surplus for homeowners."]