#13 b
The problem asks us to describe three concerns the regulator might have based on the assets shown. I understand the Sample answers etc... but I've seen no example like this in the source text or BA wiki's giving some thresholds or sense of what my concern a regulator (eg. 42.9% of uncollected premium is non-admitted is too high... is the threshold 10%? 15%?)
thanks,
-Marco
Comments
The answers are some common sense observations, rather than being related to codified thresholds.
"Cash is only 1.6% of admitted assets"
This is low level of cash.
"42.9% of the uncollected premiums is not admitted"
Too high.
"The company has a high portion of stocks relative to bonds."
Healthy insurers keep bonds-heavy portfolios.
You're right that in the maelstrom of schedules and rules, the syllabus does not really offer a plain-English approach to evaluating an insurer balance sheet. I'll see if something can be done about this.