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Unfortunately, I'm not familiar with the distinction, so I can't add to what's already explained in Odomirok.
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The wiki note meant "Part 3 of Underwriting and Investment Exhibit." That's where the expenses "originate" from.
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Here is the wiki note regarding the 40% cap: https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Week_2:Day_5.28R5.29:~:text=(average%20growth%20over%20last%203%20years)%20is%20capped%20at%2040%25%20for%20each%20year The reason for the cap is pro…
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I don't think there's a contradiction. Examiner says stating that GAAP allows all kinds of discounting with no limitations is a mistake. Examiner gives disallowance of discounting except for tabular discounting as a correct answer. These two stateme…
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Where do you find paid losses recoverable from reinsurance not listed under admitted assets?
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Your second message above has the correct interpretation. ( I guess it's true that the "IBNR" heading is a bit misleading.)
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Actually, these changes don't seem to affect your issue. Odomirok has "investments in affiliated insurance companies" go into R0 (p. 249), and "affiliated investments" go into R2 (p. 265). This is how the wiki has it as well. Since the given of the …
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Sorry, here's that note: https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Alice.27s_5th_Day_.28R0_and_Another_Exam_Problem.29:~:text=on%20that%20though.-,E%20(2017.Spring%20%2319),off%2Dbalance%20sheet%20or%20other%20items,-Subsidiary%20and%20aff…
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There is a wiki note on the changes to Odomirok that affect this exam problem: https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Alice.27s_5th_Day_.28R0_and_Another_Exam_Problem.29
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It's a typo. "2002" should be "2009."
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Not necessarily. If you want to scrutinize a certain company, you can simply look at its latest Schedule P triangle. You don't need to compare it to the triangle of a previous year.
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What it means is that you must not discriminate your prices for reasons other than operating cost efficiencies. For example, if you offer different prices in two different states, it cannot be simply because one market can take on higher prices than…
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The annual statements of the pooling companies are configured each year according to the pooling arrangement of that year. So no, prior statements are not incorrect, even though their pooling arrangement may be different. The pooling applies to a…
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Sure, good luck.
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NAIC.IRIS definition for IRIS Ratio 4 gives the following types of reinsurance companies to be included in the ceded unearned premium total: Authorized, Unauthorized, Certified, & Reciprocal Jurisdiction. It is true that "certified" and "r…
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From a technical standpoint, accountants can very well allocate expenses to lines, given the method of allocation. But the allocation of expense to different lines is, in certain cases, an abstraction that is necessary for the specific purpose of ev…
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2017.S.11 also calculates the investment gain for a single year, 2015, while using the mean surplus of two years, 2014 and 2015. The mean of two consecutive years' surplus is taken as the basis to calc investment gain, because surplus is continuousl…
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Yes, advance premium is unearned in its entirety.
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In the problem, Homeowners surplus is allocated from the mean of all-lines surplus for the years 2014 and 2015. So, the HO surplus is also the mean of two years. I don't see why you think it's calculated for one year.
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It's an Exam 8 topic, Advanced Ratemaking.
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I agree with @marquaty on the interpretation of his Odomirok excerpt.
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Yes, the correct valuations for SAP and GAAP are switched in sample 1. They have it correct in sample 2.
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Expected future mid-year payments are (100, 60, 40). From this, the unpaid at the start of each year is (200=100+60+40, 100=60+40, 40).
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You're right that net DTA is not very liquid. So, under SAP, it is subjected to a strict admissibility test. What's declared as DTA is that which is admitted. [https://battleacts6us.ca/wiki6us/Odomirok.22-23-GAAP#DTA:~:text=DTAs (Deferred,DTAs%20…
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Letter of credit triggers a payment by the insurer's bank, upon meeting the conditions of a certain liability. But until those conditions are met, it cannot be considered a liability. Funds held by company under reinsurance treaty is the collateral …
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Risk retention groups is still covered and the GAO report is a report on this topic, so we kept the wiki article on it.
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You'll find these covered in detail in the GAAP article in the wiki. https://battleacts6us.ca/wiki6us/Odomirok.22-23-GAAP
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You'll find the answers to this problem in the GAO.report wiki article, which is linked to from the Porter.3.Roles.Fed article. https://battleacts6us.ca/wiki6us/GAO.Report
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Reinsurance company deposits in a bank an amount commensurate with the collaretal demanded from it by the cedent. The bank, in return, issues a letter of credit, to the tune of this amount, to the cedent. Letter of credit is an instrument for the ce…
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This is the relevant note on Odomirok page 261: ". . .Half of the charge for RSATs and mandatory convertible securities is applied to R1, with the remaining half applied to R2. This assumes that half of the securities in the calculation are fixed…