Materiality Standard in Spring 2019 #22 part b
one of the percentage-based standards is % of loss & LAE reserves.
Based on Spring 2019 #22 part b, I am interpreting this correcting that this should be % of point estimate reserves, rather than % of carried reserves?
Comments
Yes, the question stated that the materiality standard is 10% of "indicated reserves", but the column heading in the table is "point estimate" (rather than indicated reserve.)
That was a bit confusing, but you know that it couldn't be 10% of "carried reserves" because carried reserves can be set arbitrarily by management and might differ from what the actuary calculated.