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Calculating it this way allows you to calculate net investment gain for a specific line of business. You have the liabilities by line of business, but not assets.
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Have a look at an Allstate annual statement to see how Schedule T is organized. https://allstatecorporation.com/statements/statutory-statements.aspx
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In essence, you can. But don't forget that that statement is in relation to tax benefits to the filer.
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In this instance, "taxable" and "non-taxable" do not refer to different kinds of income. Rather, Graham is using this convention to express the direction of the impact of commutation on taxes. Primary ends up with less taxable income, because it ass…
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Observe the wiki note on this: ". . . 'Substantially All' exception: IF (significant loss NOT reasonably possible) BUT (reinsurer assumes 'substantially all' risk) THEN (risk transfer may still exist) . . . " 'Substantially All' exception is a…
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Yes, assume there is no pre-determined payment pattern. It's a less-than-perfect exposition, but it helps to test the application of the 10-10 rule.
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As stated in paragraph 6 of the SSAP 9 source text, material Type I events shall be reflected in the prior year's financial statement. Regarding 2018.F.10.c.i (agents' balances), the source text and examiner's sample answer seem to be in agreemen…
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Which quiz's battlecards are you referring to please?
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No need to overthink it. 2017.F.28.a is a carelessly written question. You can tell from the cursory sample solution. They just wanted you to regurgitate the list of conditions for reinsurance; the didn't bother to provide givens that would make it …
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Sure, good luck.
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Yep, correct.
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Ok then, good.
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You're right to be confused and your points are valid. This is a case of the syllabus offering two pieces of inconsistent information. It is not the case that some states use one method and others use the other. Our advice is to watch closely …
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Which question in mini BattleQuiz 2 are you referring to?
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How do you mean? The Tn in this problem is greater than Pn for both reinsurers.
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Even if it is not spelled out in Odomirok, the credit risk elements of RBC (i.e. reinsurance recoverables) will have some reliance on the company ratings from rating agencies.
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Here's one possible explanation from Graham: * If DAB were a liquid asset, you would add it to the denominator (thus reducing the IRIS 9 ratio) * But since it is NOT a liquid asset, you CANNOT add it to the denominator. * But IRIS 9 is still …
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It is a convention that Sch P uses. A reasonable rationale for it is that Part 4's top left corner gives the reserves on prior AYs as of end of that cell's column-year. Sch P chooses to keep track of paids on prior AYs starting with the yearend of t…
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Schedule P Part 5 also has monthly development. Only, its orientation is different. The diagonals in Part 5 correspond to the columns in the sample answer.
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Ok then.
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Sure, good luck.
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That is correct. Retroactive reinsurance is recognized outside of Sch P.
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We revised the wiki to mention this fact about S&S: https://battleacts6us.ca/wiki6us/Odomirok.15-P#Overview_.26_Organization_of_Schedule_P:~:text=Side%20note%3A%20If%20salvage/subrogation%20is%20shown%20in%20Part%201%20then%20the%20total%20pa…
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Commutation price in the range of (1.7M, 1.9M) (from part a) is AFTER the tax benefits to insurer and reinsurer are considered. This price is less than the 2M discounted reserve, so surplus is bound to decrease.
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Yes. It's the tax-basis EP that's subject to investment, not EP.
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Yes, you're right. Note that the column header for the years column in Sch P is "Years in Which Premiums Were Earned and Losses Were Incurred." Losses are incurred according to the type of policy. For example, for Other Liab - Claims-Made line, loss…
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Insurer is acting as ceding insurer. This is the unearned portion of the premium ceded to reinsurer.
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The paragraph immediately following Table 102 in Odomirok explains invested asset valuation under GAAP. Valuation depends on whether the asset is classified as AFS, HTM or Trading. They did not tabulate this unfortunately.
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Sure, good luck.
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The reinsurer hasn't paid the amounts that were due in the last 90 days of 2014 (Oct, Nov, Dec). But they indeed paid the amounts due in Jun, Jul and Aug in the last 90 days of 2014, each paid 120 days after they were due, as per the given in the qu…