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Correct. I think you mean NFIP subsidized the rates.
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Ok, I see. I just had the same question from someone else, here's the answer: https://battleacts6us.ca/vanillaforum6us/discussion/224/spring-2016-15#latest
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Ok, so, UEP is a Balance Sheet liability item that is provided as of end of the filing year in question. My previous explanation applies. Here, it was provided for both CY an CY-1 (a trick). But since we are asked for the liability as of end of CY, …
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Correct.
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Yes, GAAP would have treated this the same way. As the wiki notes, this was a "trick" in the problem. The item itself is nonsensical: if the loss is below the deductible level, then by definition, it is not the insurer' liability.
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In 2016.S.15, there is only one UEPR figure given, 575000. It is the balance as of yearend 2014, and it is what should be included in the total SAP liability. UEPR is not attributed to AYs; it is the liability of the whole portfolio as of a point…
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Trying again, Yes, 1- and 2-year loss eserve development found in Sch P Part 2 give an indication of the adequacy of the past two years' reserves. Yes, Ratio 13 is used for this. It averages the reserve ratios of the past two years and applies…
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* Yes, 1- and 2-year loss eserve development found in Sch P Part 2 give an indication of the adequacy of the past two years' reserves. * Yes, Ratio 13 is used for this. It averages the reserve ratios of the past two years and applies it on the pr…
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Sure, good luck.
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Removing PHD from Other Income effectively removes it from Net Income. Net income is defined to be after removal of PHD.
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U&IE and IEE are similar. U&IE is found in the Annual Statement, whereas IEE is standalone. Generally, U&IE provides more detail on premium and loss, while IEE provides more detail on expenses. Most importantly, IEE is "goal-oriented," i…
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Yep, sure
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In the Annual Statement context, "incurred" is generally defined as paid loss + change in unpaid loss. Elsewhere, in actuarial analysis, "incurred" usually means paid loss + change in case reserves.
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Yes, GWP for both R4 and R5. Question may also give NWP and assume no reinsurance: https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Week_2:Day_4.28R4.29:~:text=(Should%20use%20total%20GWP%20from%20the%20FIVE%2DYEAR%20HISTORICAL%20EXHIBIT%20discus…
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Returning the option of regulation to the states is the more precise way of describing this facet of the act. This is noted in the wiki here (there is a link to it from Porter.2-Devlpt): https://battleacts6us.ca/wiki6us/Porter.3-Roles-Fed#excepti…
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Sure, good luck.
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Yes, exactly because 2016.S.15 figures are from Schedule P. In 2017.F.10, the years are calendar years, not accident years. You can tell this from the fact that the given items are Income Statement items, not Schedule P items.
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See the following for our latest thinking on what the text says on this topic, and on this exam question in particular: https://battleacts6us.ca/vanillaforum6us/discussion/605/statutory-loss-reserves-are-booked-at-their-nominal-undiscounted-value…
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Part 1 includes both gross and net. Parts 2, 3, and 4 are all net of reinsurance.
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Yes, this is correct.
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I agree with the interpretation from the both of you.
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Yes, this makes sense. But I don't think any states make laws condoning tying. The key element if the prohibition of tying is whether the firm doing the tying has a monopoly over the market. If they don't, they may still be able to tie multiple prod…
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What part of the text are you trying to understand?
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Sure, good luck.
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This fact supported the argument that insurance is inter-state business, making it more suitable for federal regulation.
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The initial RBC charge rates are provided by the NAIC per line. (Then, the are adjusted by the LDF ratios.) NAIC must be using the industry-wide volatility of a line of business in deriving its charge rate. Presumably, rating agencies go one step fu…
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Yes, that is correct.
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The sample answer item you quote is wrong. We'll put a footnote in the wiki about it. Thanks for pointing it out.
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Where do you find this said in the text?
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It's explained on page 260-261.