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It is the Canadian regulator. It's left outside the 6U syllabus scope (Odomirok Part VII).
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Sure, good luck.
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I find this statement at the end of page 13 of the text: ". . . As of 2012, CMS will review all workers compensation MSA’s where: • The claimant is either a Medicare beneficiary and the settlement is greater than $25,000 or • The claimant is…
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The distinct categories of state provision of WC insurance are exclusive, competitive and none. The text defines "partnership" this way: ". . . Where private insurers may sell workers compensation, a public-private partnership exists since th…
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My original answer was in error, please disregard it. My apologies. Line 16.1 on the asset side of the balance sheet comes from Schedule F - Part 3, and is the sum of columns 7 & 8. (Or column 43, which equals the sum of columns 7 & 8.) T…
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Yes. GAAP liability is gross of retro reins, and an asset is set up for retro ceded reserves. They cancel each other, and surplus stays the same. There's more to it. Here's from the wiki: "When retroactive reinsurance is purchased, any income …
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I was going off of this paragraph on Odomirok p123: "IBNR losses on contracts in force prior to July 1, 1984 and not subsequently renewed are exempt from the statutory provision for unauthorized reinsurance. These contracts are identified by a 4 …
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Item 6 in Schedule F Part 6 corresponds to (is equal to) item 16.1 of the Assets page of the Balance Sheet. As the name suggests, it is the net amount recoverable from reinsurers, after all ceded assets and liabilities are reversed. You'll note i…
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Correct.
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The pre-1984 IBNR is not excluded from provision for reinsurance for unauthorized. Rather, the line is marked with code 4 in Part 3, and the relevant amounts provided in Part 2, Question 17 of the General Interrogatories, to allow users to assess it…
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Yes. DTA arises from the change in Net Unrealized Gains. Net Realized Gains are taxed as a part of total income.
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This is not in the paper's errata, but it's certainly an error. He meant to say 100, but said 200 instead. The resulting 172.75 is correct, as if 100 had been used.
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Reinsurance recoverable from reinsurance contracts that fail the risk transfer test does not go with amounts receivable relating to uninsured plans. It gets deposit accounting treatment and is therefore left outside the scope of R3.
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12.F.17a answer states that 1/2 of general expenses are already included in pre-paid expenses. I would take this as a rule of thumb, whenever pre-paid expenses are provided in the question.
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I think there is an error in the question in stating that NWP RBC after discount is in 000's - they are not. Then, all charges are at the same, dollar level, and it works out.
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It holds for Purchasing GAAP only. The difference of Goodwill under SAP versus GAAP is explained on p331 of Odomirok (Cpt 22).
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* Yes, the answer was given in thousands. * There is a particular paragraph in the wiki that deals with this issue in this exam question (R3 with intro to R4): https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Week_2:Day_3.28R3_with_intro_to…
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Have a look at Table 2 on page 28 of Odomirok. Nonadmitted assets is a very small portion of all assets. While nonadmitted DTA is a more significant portion of all DTA, DTA itself is only 1% of all assets. In other words, this is not a very signi…
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Double taxation refers to the fact that the investment income of the company is taxed, and then, the dividends from your shares in the company are also taxed. By investing directly, you avoid the first level of taxation.
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I see. In this case, some of the main statements that come to mind that can be used in assessing liquidity are the ones published in the Annual Statement. Balance sheet, income statement, cash flow statement, notes the financial statements, and all …
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Could you point me to the exam question you mention, so I can take a look?
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We did not find need to create such a classification of financial statements. Those that are found in the Annual Statement blank are within the statement, and those not found there are published outside of it. I have not come across exam questions t…
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The SSAP62 statement really means that what should have been ceded losses (and serve to reduce net loss reserves) are instead put into a non-reserve liability. This makes the RBC R4 charge higher than it would have been had the loss amounts been cla…
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Your tax observations are correct. CAS dropped a note in the syllabus, saying to read the Klann paper in view of the Odomirok text. (It's in the reading list, for Klann.) It's a lazy way to do it, but I think it is their acknowledgement that certain…
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It refers to the net fixed expense ratio. With the fixed expenses constant ($2M in the text example), higher net earned premium implies lower net fixed expense ratio.
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Yes, it seems the new Odomirok edition doesn't talk about the Analyst Team. You can disregard that battlecard.
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Yes, you would. We will make that revision in the wiki. Thank you.
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Discounting of future loss payments is ordinarily needed. In 17.S.20, no payout pattern is given, leaving open the possibility that the given best estimate is already discounted. That's why they accept answers both with an without discounting. In 15…
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Most of the items listed for pitfalls and considerations do not directly play into the 10-10 and ERD tests, at least not in a way that you will conceivably be questioned on. These are pitfalls and considerations above and beyond the tests in determi…
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NAIC.IRIS has IRIS 4, the surplus aid to surplus ratio. Surplus aid involves reinsurance commissions. The schematic for IRIS 4 in the wiki lays it out in detail.