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Meeting immediate obligations with immediate future earnings, or with capital infusion, is not the same thing as continuing operations, because the latter has an implication of longevity, whereas rehabilitation is usually followed by liquidation, as…
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The combined operating ratio is defined as seen in the answer to this question. There are no other items to be concerned about to include in the expense ratio. In the wiki: https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#:~:text=Reminder%3A%20Th…
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According to Odomirok, under GAAP, goodwill is recognized in the Income Statement only when you acquire at a bargain, i.e. purchase price is less than the implied capital of the acquired company. On page 339: ". . . When an entity agrees to buy a…
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Creation of goodwill asset does not hit the earned premium in the income statement. So, no impact on income.
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Sorry. Turns out despite that quote, there actually is an example of PDR calculation in the text. It's in Cpt 22-23, GAAP. https://battleacts6us.ca/wiki6us/Odomirok.22-23-GAAP#PDR_Calculation:~:text=gain%20is%20%22earned%22.-,PDR%20Calculation,-T…
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Sherman is applicable to colluding, as evident in SEUA. This is the latest state of its applicability in history: Paul v Virginia is superseded by SEUA.
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These calculations are not in scope. From the text: ". . . As a result of actuaries’ involvement in the pricing and reserving of business, actuaries are in a position to provide input on whether a premium deficiency reserve is necessary and on th…
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The numerator is surplus aid. There being surplus aid is contingent on there being unearned premium ceded to reinsurers. So, yes.
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These three are separate line items: realized capital gains, ph dividends and sh dividends. The actions on them may have negating effects, but each item will change individually, irrespective of the actions on other items. So, liquidating capital ga…
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Sure, good luck.
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Yes, this is correct.
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Realized Capital Gains is a line item that increases net income and surplus. If you then pay out this gain in dividends, that in turn will decrease surplus.
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I think the amount written off goes into "Net gain (loss) from agents’ or premium balances charged off" as a negative balance, which reduces net income (item 12 in the Income Statement, under Other Income).
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That comment is made about residual markets, rather than state funds. I find the following comment in the source text: ". . . State funds are, by law, designed to be self-supporting from their premium and investment revenue. . . ." This su…
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This means: "Goodwill is apportioned into yearly increments, for a period not to exceed 10 years, and placed in unrealized capital gains."
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Could you tell me where you find this phrase?
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We revised the battle card for 2019.F.7 to reflect the distinction between RMA and the government made in the text. You'll notice that the examiner's answer is not exactly aligned with what's in the text. You should assume the text governs, and the …
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DTA is included in GAAP, whereas admitted DTA is included in SAP. See 2014.F.15.
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Yes, it means Schedule P is gross of retroactive reinsurance.
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Sorry, direct linking to the wiki note doesn't seem to work. It's in the second table of the article, under 2014.Fall #19.
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Trying the link again: [https://battleacts6us.ca/wiki6us/Odomirok.22-23-GAAP#:~:text=Discounting loss reserves (no,SAP%20rate%20or%20reasonable%20alternative](https://www.battleacts6us.ca/wiki6us/Odomirok.22-23-GAAP#:~:text=Discounting loss reser…
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Discounting is allowed under both SAP and GAAP. The linked wiki note, and the full BattleQuiz question 17's answer, gives the discounting rates allowed under either system. [https://battleacts6us.ca/wiki6us/Odomirok.22-23-GAAP#:~:text=Discounting…
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That bullet point means "reinsurer's assumed reserve is 15% higher than insurer's ceded reserve." We are talking about the reserve for the same ceded business, evaluated separately by the insurer and the reinsurer. Since insurer's direct reserve is …
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Either the formula changed, or the question was set up wrong, because your interpretation of the formula is currently correct.
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Commutation means the cedent re-assumes future payments (i.e. reserves) that would have been ceded under the reinsurance contract, for a price paid by the reinsurer. So, after commutation, the cedent cannot report any ceded reserves for the 2012 yea…
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Sure, good luck.
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No, I don't think so. I don't think there's such a list in the source text either.
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Yes, examiner's report seems to be wrong in this case.
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The tax in TLF is the premium tax, which is a kind of expense. The calculated profit is still pre-income-tax.
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Calculating the Admitted Assets section does not provide a list of the admitted assets.