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Ok, good.
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Yes, correct. Also, remember that: net investment income + realized capital gain = investment gain on insurance transactions + investment gain on capital and surplus
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Where exactly do you find the question you refer to please?
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What is on the Income Statement is net investment income, which is as per the formula in the wiki. But problem 16 asks for investment income (not net), so non-federal TLF is not included in the answer. The non-federal TLF referred to here is inve…
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net investment income (after non-federal tax) + net realized capital gains (before capital gains tax) = investment gain on funds attributable to insurance transactions + investment gain attributable to capital and surplus The terms in the right-s…
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We are looking into this and will let you know soon.
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We are looking into this and will let you know soon.
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We are looking into this and will let you know soon.
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Ok, good.
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I couldn't find the "decreasing asset," or a specific discussion of run-off agreement in the wiki. The GAAP section discusses retroactive reinsurance, but no mention of the asset for consideration. Maybe, "funds held on reinsurance contracts" is …
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10-10 rule has two conditions: chance of loss has to be >10%, and amount of loss has to be >10%. The test is failed if either of them does not hold. By contrast, the EPD test uses the expected value of loss. In this case, it is 5%*25%=1.25%. …
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High TBIL is effected with a high discount factor, which is the result of a low discount rate. Remember that discount factor is less than 1. So, yes, what you say is correct.
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In Part 3, column 7 is ceded paid and column 9 is ceded case. Technically, there is no column for incurred. Column 15 is the sum of loss, LAE, uep and contingent commission, so it's more than just "incurred." This must be why they considered giving …
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Could you point me to exactly where you see the sentences you quote?
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No. They mean the same thing.
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You're right, the examples should have read "personal auto." Commercial auto would have been included.
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We fixed it. Thank you. https://battleacts6us.ca/wiki6us/Odomirok.14-F#RP_overdue_certified
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Not necessarily. UEP is determined by applying an earning algorithm to premium. This may fall short of estimated future losses.
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What the highlighted wiki note means is, the derivation of the discount factor from Schedule P Part 1 is no longer testable material. You may still get quantitative problems where the discount factor is a given.
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The answer is in SSAP 62R, page 10, item 34-k: _The consideration paid for a retroactive reinsurance agreement shall be reported as a decrease in ledger assets by the ceding entity and as an increase in ledger assets by the assuming entity. _ …
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2014.S.23a is outdated, because 10-K triangle is no longer in the Odomirok section dealing with 10-K (p 331-338).
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Yes, your way is equivalent to what's being done in the solution. Graham was trying to explain in detail what was given as cursory additions in the examiner's solution, and that solution, for some reason, added ceded to net, instead of going dire…
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Ratebook optimization adjusts the existing rating factors for non-cost considerations. By contrast, hybrid optimization adds an extra factor for non-cost considerations.
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Overall, I agree with your assessment. There is also the viewpoint that doing so serves to better separate the indications of the two ratios. That is, if Ratio 11 is unusual, you avoid penalizing the profit ratio for the same reason. NAIC seems to h…
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2016.S.12 assumes three rows, instead of the usual 11 rows of parts 2, 3 and 4. Other than that, your understanding is correct.
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Sure, good luck.
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Yes, these are the main ones. For calculating Provision for Reinsurance, the problem would usually give you what the collateral is, rather than make you look for it. Although, never say never.
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In short, it can mean both. I note that the wiki gives the following options as company action: -explain how to raise needed capital -explain how to reduce operations to save money -explain how to reduce risks to lower RBC charges The RBC…
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I think it simply means standard 29 addresses prepaid expenses alone. Yes, these other items are used in the calculation of prepaid expense, but this particular standard is not for the accounting of these other elements.
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I found this for Maine: https://legislature.maine.gov/statutes/24-A/title24-Asec2168-A.html Other states may also have a similar approach. I think the level of control of the tying firm over the market is key to defining an act as tying.