Spring 2017 #19b
Hi,
The examiner report stated that Adj Capital = PHS - Non-Tab Discount - Tab Discount. It makes me confused cause the Wiki said that Adj Capital = PHS - Non-Tab Discount - Tab Discount on Medical only. Is this answer from examiner outdated?
Comments
As the Wiki points out, indemnity tabular discount is not subtracted out of PHS:
https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Alice.27s_4th_Day_.28An_Exam_Problem..29:~:text=Trick%3A%20In%20the,to%20correctly%20solve%3A
In this sense, the answer key of the problem is wrong. However, the problem did not specify if the given tabular discount was medical or indemnity. The solution assumes that it is medical.
I don't understand how the range of surplus is being calculated in the BattleCard. I can derive the RBC Charge, but how is the range of surplus calculated? In the case of RAL, I figured it would just be 100%-150% of the RBC Charge
These percentages are RBC ratios, TAC/ACL. You back into the surplus in TAC in the cases of 100% and 150%. It is laid out in the Battlecard. Let me know if there is an aspect of that calculation you don't understand.