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Here's a definition of runoff: "Run-off portfolio refers to insurance policies or reinsurance contracts terminated but for which the Insurer or the Reinsurer remains liable for until the final settlement and payment of the claims. It may be a bus…
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I'm not familiar enough with Solvency 2 to comment. It's not on the syllabus, no?
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The correct formula from the wiki is: (surplus)CY = (surplus)CY-1 + (NI)CY + (direct charges to surplus)CY https://www.battleacts6us.ca/wiki6us/Odomirok.8-9-IS#:~:text=The mini BattleQuiz has a practice template based on this problem. To summa…
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Interest rate risk and default risk are reflected in the basic charge factors of R1.
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While the wiki lists these two as distinct methods, note that Method 2 is named " 'substantially all' exception." It is essentially an exception to Method 1. When you find that existence of risk transfer is not reasonably self-evident according to M…
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Yes, this formula is correct, according to Odomirok Table 98. And this loss-sensitive discount is subtracted from the base charge in getting to the final charge.
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Sure, good luck.
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The section on Structured Settlements on Odomirok page 329 explains it well.
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I see in the linked wiki note that class 06 is also included. https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Basic_R1_RBC_charge:~:text=Warning%3A%20The%20source%20text%20states%20that%20unaffiliated%20classes%2002%2D06%20plus%20non%2DU.S.%20go…
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Yes, that is correct.
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Discounting is performed on reserves; premium is not involved. Tabular discount involves use of discount factors based on life tables, which are usually specified by state statute. They are most commonly used in Workers Comp. Non-tabular discount ra…
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Ok. I take it you understand that we are making the prior row equal to only the amounts paid since the oldest year. The reason for this is simply because the prior year is defined that way. The reserve triangles show the reserve of prior years as of…
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Yes, we will update the wiki for the description to read "mostly voluntary." Thank you.
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Here's a note from Graham on this: I would say they don't have to memorize the RBC factors but there was this problem from 2016 where they did not provide them. I suspect that was an oversight (although the CAS never said so) and that they will a…
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Where in the answer key do you see this interim step 36,350?
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The link in the past exam questions list for this question links to the CAS layout.
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Vaughan does not give concern for insurer's reputation as a reason for forbearance. I am not familiar with the intricacies of an actual regulatory intervention, but I imagine they would be discrete in the actions they take and mindful of the insurer…
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Yes, this answer is correct. Thank you zporiri.
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In this question (part c), it looks like the examiners defined a correct answer as one which includes an aspect of insurance distribution and a way in which residual market helps achieve that aspect. The answer key says "at least one item from each …
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Sharing the risk with FEMA may involve a primary-excess relation with FEMA. The fourth bullet refers to cases where the entity assumes a reinsurer role, in partnership with other reinsurers and/or FEMA.
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Yes. There is a note to this effect at the bottom of page 4 of the document.
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Question asks for "average unpaid claim severity." This term is a bit ambiguous, because severity usually refers to paid+reserve on the average claim. Here, they use it to mean average unpaid (or average reserves) on an open claim. Unpaid is compose…
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SAP loss reserve is seldom discounted, whereas GAAP is more lax in reserve discounting. This distinction is explained in the wiki in the answer for 2014.Fall.19. Fair value of loss reserve is a concept used in Purchasing GAAP, for company acquisitio…
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Sorry, they're on page 360 of Odomirok.
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No, that phrase means IBNR of loss and of LAE.
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An "outlook" is a rating tool used by rating agencies, which anticipates a rating change. Feldblum explains it in paragraph 7 of page 22. This paragraph is in Appendix C, which is excluded from the syllabus.
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The table is a schedule of payments, with pertinent dates. It will only cover recoverables on paids, not on reserves.
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Special surplus is entered in item 29 of Liabilities and Surplus exhibit, and in the Details of Write-ins on the same exhibit. Odomirok does not have a specific explanation for it, rather states what items are entered as special surplus.
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See paragraphs 1 and 2 of p630, and the problem example in Odomirok. Sure, good luck.
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I don't understand what you refer to with "first battlecard for R1." However, see footnote 3a of the exam question list. It states that part c of this question is outdated, because interest rate risk and cat risk are now part of RBC.