graham
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You're correct that something doesn't seem right here. When I went back to COPLFR to research this however, I think the examiner's report is probably ok, but it's a tricky question. First note that for something like inter-company pooling, if the…
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Link to exam question: * https://battleacts6us.ca/pdf/Exam_(2014_1-Spring)/(2014_1-Spring)_(25).pdf The way this question was asked allowed for several different answers. The scenario given in the problem mentioned both work of others and i…
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Sorry, I missed that. It's line 7 in Exhibit B. You can see it in the following excerpt from the Odomirok et al CAS Financial Reporting text, if you scroll down to page 7: * https://battleacts6us.ca/pdf/Odomirok.Reporting_(2019)_p422-429.pdf …
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At first glance, it seems like they're testing knowledge of the layout of the balance sheet, but just knowing the layout wouldn't be enough to answer this question. The items A through F are not the labels that are used on the balance sheet. Also, t…
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The surplus would already be available in the annual statement so there is no specific disclosure requirement for this in the SAO.
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There are currently 5 old exams available plus one practice exam, which is 6 full exams. (You still have access to all the pre-2017 exams, although not in Excel format.) Actually, it was a conscious decision to stop at 2017. I honestly don't thin…
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Yeah, I missed that one. I've turned it orange to indicate it's at least partly outdated because of the reference to AMTI. Thx!
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Thx, I've fixed it!
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Here's how I solved the problem using the formulas given in the first web-based problem of quiz 1 in the NAIC.IRIS wiki article. I think this will answer your questions. If not, let me know. First, here's the link to the quiz: * https://batt…
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Update: I looked into this a little more and there is definitely a typo in Odomirok: * The bond size factor for 1,300 issuers should be 1.0 (not 0.0) But the other part that changed from the previous edition is that if there are more tha…
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That's an interesting question because the CAS Financial Reporting Text by Odomirok was updated recently. In the prior version, this is what the source text says: * The bond size factor only applies to portfolios having fewer than 1,300 bonds; …
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Unfortunately there is no way to give a conclusive answer based on the source text. In general, a profit commission is way of sharing the profit (if any) from a reinsurance contract. The purpose of the profit commission is to encourage the primar…
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That's part of why this problem is a little confusing. There are 2 types of cession that are possible here. * this group of companies could cede to an outside reinsurer (the company described in this problem doesn't do this however) * this gro…
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Try taking a look at part (b) of the following exam problem that demonstrates the calculation involved in the ERD test: * https://battleacts6us.ca/pdf/Exam_(2015_1-Spring)/(2015_1-Spring)_(25).pdf Also, try looking at similar exam questions…
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I don't think there is a particular reason. I suppose NPV would include both a severity and frequency component whereas average severity would not account for frequency. In an ERD problem however, maybe it's clear from the context how to interpret t…
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This was tricky because it seems like the reinsurer should "give back" the ceded premium as part of the commutation transaction, and then the primary insurer's NWP should go up by that amount. The reason the NWP for the prior years doesn't change…
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They certainly are!
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Yes, you're right. I think the solution method is fine, but the given information was not labelled correctly. I'm not sure why I put "net" in parentheses after "direct". I have changed it to read: * primary insurer RESERVE direct (gross) * pri…
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Sure! The reason is that the scenario they describe in part (b) is different from the scenario in part (a): * In part (a) they are asking you to calculate the surplus as of Dec 31, 2013 assuming no reinsurance. * In part (b), they are introduc…
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Interesting question. The big picture, I think, is that the examiner's were testing whether you knew the definition/process for inter-company pooling but they didn't want to just ask you to recite the definition. Instead, they provided a real-life s…
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Part (b) Yes, this was about R4. It's slightly confusing when you first read the question because you just finished calculating R5 in part (a) so you would think they're going to ask about R5 again in part (b). Also, the examiner's comments state…
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I couldn't find where that's explained in Odomirok, but here's how I thought through it: * Before the primary insurer purchases reinsurance, there are no reinsurance recoverables (obviously.) * Then when the primary insurer purchases reinsuran…
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Yup, thx!
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I like it! I've changed it in the wiki and BattleCard. Thx!
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I think what you might be looking for is at the link below. After the conversion from paper and pencil exams to computer-based testing, I created a new wiki page that has Excel versions of the problems found in the wiki articles. There's a link on t…
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They were trying to trick you. The 4th bullet point in the statement of the problem is: * Unearned premium reserves were calculated under the monthly pro rata method, and there are no income taxes. The monthly pro-rata method is from Exam 5…
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I like it! I've linked to your post from the wiki article here: * https://battleacts6us.ca/wiki6us/Porter.2-Devlpt#1890:Sherman_Antitrust_Act.28and_others.29 Thx!
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Well, it's a bit tricky with the U&IE (Underwriting & Investment Exhibit.) If you're studying the Odomirok chapters in the order in the Ranking Table then you wouldn't have gotten to Chapter 18 on the U&IE. This problem uses a little bit…
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I laughed out loud about your memory trick! The best memory tricks are the ones that are personal to your own experience. I'm going to link to your post from the wiki because I think other people may get a kick out of it too. Thx!
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My answer to your other post may answer your above question as well. Check out this wiki page for lots of Excel practice: * https://battleacts6us.ca/wiki6us/Excel_Practice_Problems Note that you can get to this from either: * The Comba…