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One-year development, the one used in IRIS 11, is the change in ultimates. You can't add this to paid and get calendar year incurred. U/W income is on calendar year basis. There is no u/w income on accident year basis.
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One-year development is the change in ultimates (Part 2), not in reserves.
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(165,45,120,20) are total reserves (case+IBNR) as of end of the given years. One-year development is not CY incurred. There is no Note 23- specific wiki. Your best bet is Odomirok.
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Surplus Aid is 30% of ceded UEP. The IRIS 4 text shows UEP as made up of three pieces. The clue is in the first piece. It is called "UEP - Unauthorized, Authorized, etc". These are terms used for reinsurers. IRIS 11 is not one of the ratios th…
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That sentence applies to both the bonds to use in BSF, and the bond charges to apply the BSF on. They care about the diversification of non-US-govnt bonds. US-bonds are alright to have as they are.
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Sure, good luck.
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Your answer is in line with the ultimate loss ratio answers. "Insurer #1 has increased ultimate claims along each diagonal but it hasn't earned more business." --> This is an (unusual) way of saying their loss ratios are increasing. The …
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See this thread: https://battleacts6us.ca/vanillaforum6us/discussion/1086/2019-fall-12-and-2019-spring-10-contradiction#latest
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Subtract the 2012 column from the 2013 column of Part 2, except for the 2013 row. Each row is for an accident year. Column 2012 gives the ultimate loss of each accident year evaluated as of 12/31/2012. Similar for column 2013. 2013 accident year …
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The term Authorized Control Level (ACL) has two meanings. One is the denominator of the RBC Ratio, which is 50% of formula-determined RBC. The other is the regulatory intervention level. The regulator is authorized to take control of the company, if…
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See the wiki solution here: https://battleacts6us.ca/wiki6us/Odomirok.25-Solv2#:~:text=Here%27s%20a%20pdf,2017.Spring%20%2320 discounted cost-of-capital for year X = SCR (R-i) (discount rate)^X
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See this wiki note on this question: https://battleacts6us.ca/wiki6us/NAIC.SSAP-9#:~:text=1%20I%20believe%20the%20answer%20to%20part%20(c.i)%20in%20the%20examiner%27s%20report%20is%20partially%20incorrect.%20Part%20(c.i)%20is%20a%20Type%202%20sub…
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2019.F.12 listing real estate as a non-admitted asset is an error. Here's Odomirok text regarding non-admitted asset and real estate: "Amounts held of specific types of bonds, stocks, mortgage loans or real estate that are in excess of limita…
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These are explained in a schematic in the Practice Problem in the Intercompany Pooling section of the P wiki. 1) Within the Schedule P, intercompany pooling would not be considered ceded. 2) For company B, is 1000 ceded, because the non-lead c…
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Schedule F parts 1 and 5 take note of affiliates. It's in the wiki notes.
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In a public-private partnership, it may be that the state fund is the last resort after private. In public-private competition, this is not the case. In a state-only market, it doesn't make sense to say it is last-resort. They were loose in accep…
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You compare the insurer-to-claimant payment date to reinsurer-to-insurer unpaid at 12/31/2018.
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If the outcome is 5M loss, then the reinsurer does not have a deficit; deficit is zero. The chance of this is 95%. The calc is that of the deficit when the outcome is 16M, multiplied by its probability of 5%, to give the expected deficit. That's …
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You're right about (ii). A transaction being done at arm’s length means that the parties involved are independent and act in their own self-interest, without any pressure or influence from the other party. This ensures that the deal is fair and r…
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That's not what it said. It said, using unadjusted ldfs will understate reserves. You have to think in generalities, rather than what the effect of these particular years/figures are. In the upper triangle, closure rates are higher. This means…
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5 and 12 have been recovered, but not in the last 90 days. So they don't go in here.
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At the top of the examiner's answer, he gives the paid-to-incurred ratios for years 12 to 16, each at their 12-month. This ratio is increasing. It means they are putting up relatively less reserve as years progress. Remember, here, incurred = paid +…
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20%, for either use, is a long-standing, codified convention. It is notionally reasonable for these purposes. We are not privy to how they came up with it.
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Federal authority of insurance being recognized, which is the Supreme Court ruling, leads to Sherman being applicable. The underlying reason for both is that insurance is deemed interstate commerce. The order of these is not that important.
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Sure, good luck.
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They are ground-up loss distributions specifically for the contracts. All of the loss represents what is ceded to the reinsurer.
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The correct name of the exhibit is "Underwriting and Investment Exhibit." We'll make that correction. Those methods are outside the scope of this exam. They're in Exam 9 material.
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They may have overlooked this issue in their answer key in this problem. But you never know. You will be safer to state the correct endpoint.
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There is no need for a T-cap on the authorized RP (slow or non-slow), because the RP cannot exceed T. The "T-cap" notes in the PE2.13 solution were superfluous. We will take them out.
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Pooling is done differently for Schedule P and for non-Schedule P figures. What you describe is the method for non-Schedule P. The wiki example goes through this in detail: https://battleacts6us.ca/wiki6us/Odomirok.15-P#Inter-Company_Pooling:~…