Staff - AC
About
- Username
- Staff - AC
- Joined
- Visits
- 1,404
- Last Active
- Roles
- Administrator
Comments
-
Yes, I believe that is correct.
-
NAIC first comes up with its model bills, with the intention of them being adopted by the states. States later decide to adopt, partially or in full, these model bills into their legislation. NAIC also has the capability of advocating for state regu…
-
The rule-of-24s method of earning is an Exam 5 topic. Generally, Exam 6 expects candidates to be familiar with the material on the preceding exams, including Exam 5. It is not quite reasonable to expect one to remember everything from a prior exam. …
-
The reserves that are ceded according to the terms of a retroactive reinsurance contract are written into the balance sheet as a contra-liability item, as the answer states. The contra-liability item is in a special items section, separate from loss…
-
All parts of this solution are in the syllabus, except that the regular income tax rate is no longer 35%, and except alternative minimum tax, which is replaced by base erosion and anti-abuse tax.
-
Oh, it's in the answers to the question, I see. The first simply means these type of liabilities are not reflected in Schedule P. There is a balance sheet section called "special surplus", where the surplus gain from this type of transaction i…
-
I need the context for this sentence. Could you point me to where you found it?
-
NAIC model law sought to bring about the changes that were later solidified in the M-F act, and they were put to use by the states after the M-F act.
-
b) Your answer is along the lines of the last sample answer for (a). But you should have included that this is so "prior to the SEUA case." In question (b), they're asking for how insurer's actions would be treated under Clayton. So, you have to …
-
Yes, what you say is essentially correct.
-
Yep, this is correct.
-
I'll find out about the Formula Summary and let you know. Average reserve will start out increasing through development years before they turn to decrease; this would not be an indication of inadequate reserves. The sample answer itself is a r…
-
Sure, good luck.
-
I believe they would be in the Exam 5 syllabus.
-
Compulsory Purchase of Insurance section starts on page 2 of the text. See the last paragraph of that section.
-
In this context, "aggregate" always means aggregate of the insurance industry.
-
In the alternative that I offered, I meant that the words "assign" and "transfer" can be used interchangeably. So, I'm using "assign" to mean the transfer of a policy from the insurer to either of the pools. The pools do not "assign" policies to ins…
-
That adjustment is made, because reinsurance charge gets split 50-50 between R3 and R4. https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Week_2:Day_3.28R3_with_intro_to_R4.29:~:text=know%20the%20trick%3A-,E%20(2014.Spring%20%2320),RBC%20factors%2…
-
They service the policies/claims that they forwarded to the RF. I think there was a slight slip of tongue in the phrase "even if they haven't been assigned any risks." What was meant was "even if they did not assign any risks (to the JUA/RF)." T…
-
As you see in the sample answers to part c, accepted answers included the LAPP list from above. These LAPP items can be taken to be NAIC's response to any of the acts/decisions that legally constrained insurance business.
-
We believe the examiner's statement that insurer compacts are illegal is in error. Reading the source carefully, you'll see that the SEUA decision made illegal insurer compacts that engaged in anti-competitive practices, and not necessarily all ins…
-
Sure, good luck.
-
The question does give the gross (i.e. direct and assumed) premium in the table. But you're right that it is not used to calculate a growth charge in any of the sample answers for part a, and I don't know why they don't have it. But had the growth c…
-
PML: Probable Maximum Loss
-
Option 1 is "maintain investment holdings." This means the capital gain is unrealized. Change in unrealized capital gains/loss is an item that's added to surplus. But it is first netted of capital gains tax before it's added to surplus. Because it i…
-
Yes, but note that reinsurance coverage starts at the excess of 1M in the 2M xs 1M layer, in other words, at the excess of a 2M loss. I mean it doesn't have to be a 3M+ loss.
-
I'd say this is an unusual arrangement. It looks like it's set to trick the test-taker.
-
On the one hand, the magnitude of reserve estimate uncertainty and of downside risk is higher for long-tailed lines, all else being equal. Therefore, they would need more surplus. On the other hand, Property (a short-tail line) is subject to catastr…
-
I think Graham's earlier comment in this thread had a little slip up; he must have meant to say "(That only applies to Assigned Risk Plans)", not RF. Now, various notes in the wiki say that JUA policies are serviced by the JUA servicing carrier. …
-
The example makes the assumption that there can only be one loss event during the coverage period. Should that loss be greater than 3M, the layer of loss between 1M and 3M will be covered by the reinsurer, i.e. 2M of coverage. There is additionally …