Practice Exam 2 #17 and #22

CK1CK1
in Practice Exam 1

I have a couple of questions on Practice Exam 2.
For Question #17d, is the question faulty? I think it is missing an actual question.
For Question #22a, I thought using the actuary's point estimate (or anything the actuary calculated) to calculate a materiality standard was not allowed. Am I confused about this? I thought the materiality standard was supposed to be independent of the actuary, so I used 18+7=25 as reserves (Losses + LAE).

Comments

  • grahamgraham
    edited April 2024

    Yes, for Q17d, only the data was provided. The question should have been:

    • Estimate the URR (Uncollectible Reinsurance Reserve) using the experience-based method.

    This has been corrected.

    For Q22a:

    • The solution should have been referencing the reserves listed on the balance sheet under the LIABILITIES section in the given data (rather than the actuary's point-estimate.)

    This has been corrected. Thank you for pointing this out.

  • alexissegalalexissegal

    I was doing the practice exam earlier this week, and it looks like it hasn't actually been corrected yet!!

  • grahamgraham

    I just checked practice exam 2 for Q17 and Q22, and it looks to me like everything is fine.

    Note that the original poster put this in the category "Practice Exam 1" rather than "Practice Exam 2".

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