Staff - AC
About
- Username
- Staff - AC
- Joined
- Visits
- 1,404
- Last Active
- Roles
- Administrator
Comments
-
"Investment income" does not include realized gains; "investment gain" does. The sample solution of 2018.F.11.a solves it as such.
-
While this is an NAIC.IRIS section problem, Odomirok.8-9-IS section covers the handling of investment gain in the income statement. Have a look at this linked note and table: https://battleacts6us.ca/wiki6us/Odomirok.8-9-IS#:~:text=On%20Oct%2018.…
-
You may be tempted to think that the $12 at R4-Total is the sum of R4 for each line. But in fact, the $12 also includes the loss concentration factor (LCF). LCF has to do with the distribution of loss reserves among different lines. See the link …
-
I think what Graham meant to say was, you would not encounter a negative charge in an exam problem.
-
HO charge is: 12/.85 - (3.8 + 4.7) = 5.617 It is not 4.1176.
-
They used the term "average unpaid claim estimate" only in the sample solution, not in the body of the question. You would have made out fine, as long as you understood that "average unpaid claim severity" meant average case + ibnr. We subtract p…
-
The solution refers to "Average Unpaid Claim Estimate" and "Average Unpaid Claim Severity." These are poor choices of terminology. "Average Unpaid Claim Estimate" really means average case reserve. And "Average Unpaid Claim Severity" really means av…
-
Sure, good luck.
-
You'll find the answer to this in the linked table in Odomirok.8-9-IS: https://battleacts6us.ca/wiki6us/Odomirok.8-9-IS#:~:text=out%20to%20JH!)-,item,(dividends%20to%20policyholders)%20%E2%80%93%20(fed/foreign%20taxes%20incurred)%20%C2%A03,-1%20S…
-
Sample 1 adheres to the SOI Line 28 definition, because it is adding the given 100 to surplus(last year), as it is done with Line 28. Your explanations for Sample 1 and Sample 2 are correct.
-
"Change in provision for reinsurance" is the name for a specific line in SOI - line 28. This line is defined as provision(last year) less provision(this year). It is added on to surplus(last year) in getting surplus(this year). So, when provision…
-
Sure, good luck.
-
I don't see Unemployment Insurance being discussed in the source text at all. Therefore, any answer given would necessarily be "outside the box," including the sample answers. Off the bat, I can't think of any other government insurance being ass…
-
Wiki note seems to say it doesn't: https://battleacts6us.ca/wiki6us/Odomirok.25-Solv2#:~:text=Solvency%202%20includes%20interest%20rate%20risk.%20(Note%20that%20catastrophe%20risk%20%26%20operational%20risk%20are%20now%20included%20in%20the%20upd…
-
Bonds subject to BSF are the six classes of unaffiliated bonds. The issuers of the other assets are in red: they are not subject to BSF. 2,362 is the sum-product of the bond values and their respective RBC factors.
-
Solvency II is supposed to be more comprehensive than RBC, e.g. it has interest rate risk which the RBC does not. Also, I understand that risk components of Solvency II can be tailored to ORSA of the company, where company-specific risks are identif…
-
Sure, good luck.
-
In 2018.F.3b, the question asks for "purpose," whereas your answers are for "motivation." 2019.S.5c asks for "motivation," for which your answers would be correct.
-
Climate change risk comes to mind. I don't think this would be an exam question.
-
In 2019.S.14, what is added is the CY2017 one-year development of each of the accident years 2015 and 2016. This is what's needed for IRIS 11. In the Excel practice, we gave the one-year development of all accident years, for each of CY and CY-1. Fo…
-
Porter says "rehabilitation is generally a prelude to liquidation." The wiki says "rehabilitation usually leads to liquidation." These two mean about the same thing. Further, the NAIC.Solvency footnote you quote is not necessarily at odds with this.…
-
Another way to think about it is that the interest may have been paid out in the form of a dividend, or a coupon, which would not necessitate the original investment to be sold. This is not explicitly stated in the question, either, so it would agai…
-
It can get confusing. Yes, "case incurred" means reported. Your approach works. Ordinarily, I would advise against losing time creating the whole reported triangle, when you can work with the last two columns of the given triangles, as in the sam…
-
Graham says sure, good luck.
-
The parts you circled are coherent. Reporting entity's ownership of affiliate's preferred stock is 50%. So, we take 50% of 100,000.
-
The two years used for liability are accident years. You need to use the liability on all accident years in determining surplus, because they all make up the portfolio. For assets, you want the latest picture, which is the amount as of a given yeare…
-
Where exactly do you find this wiki note on TBI version 2?
-
"Continue to exist" implies "exist for a short-period," just long enough to meet debt obligations, until company is liquidated. "Continuing operations" implies company will continue to exist for an indefinite period, which is not the situation in a …
-
Swing rate explains the direct proportional relationship between two items. Here, profit provision decreases by one point for each one point increase in loss ratio. The relationship does not always have to be 1-to-1.
-
I see the following comment on Odomirok page 261: ". . . However, not all assets are subject to the asset concentration factor, as certain assets are deemed to be of low risk or have already received the maximum charge of 0.300. The assets exclud…