graham
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Yes, and the source text seems to contradict itself on this point. If you read it carefully, it implies as you said that any broker, whether retail or wholesale, must have a license in the insured's home state. Here is what it says: * The NRRA …
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Oops, thx. I've corrected it. I gave you a shout-out in the wiki. Let me know if you're not ok with how I put your name.
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I understand what you mean and unfortunately the exam questions are sometimes ambiguous. In 2016.Spring Q16a, there are 5 different sample solutions provided with the following answers: * 19.48%, 6.2%, 5.9%, 3.8%, 10.6% It's obvious that ev…
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I don't know the answer to that. I can poke around to see if I can find out and will post another comment if I come up with anything. I'm sure it's probably happened at some point even though it seems pretty unlikely to have an exact tie in a real-l…
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IRIS 4, and in particular surplus aid, is looking at liabilities that are being removed from the company's balance sheet. Removing liabilities is what "aids" the surplus. Since UEP is a liability, we are interested in the amount that's going to the …
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The first thing to notice about the 5 answers in the examiner's report is that the first and last state the size of the residual market will increase and the middle 3 state that it will decrease. So there is no single correct answer. To get credi…
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That is a very good observation @bgoldstoff. I will amend the wiki and BattleCards to reflect that. Thank you for pointing that out.
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The CAS has not yet provided detailed information. All they said is that it is the same format as "Pearson Vue Spreadsheets" but did not elaborate. There is a video conference with the CAS and Pearson Vue on July 27 that hopefully will provide every…
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I don't have specific knowledge of this beyond the syllabus but here's what I think: * In general, the SSAPs should be considered authoritative. (The examples in Chapter 10 of Odomirok are secondary sources. Presumably they are based on the SSA…
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Ok, I see what you mean now. The Schedule F entries for the ceding and assuming insurers would have to balance. The ceding insurer would make a negative entry in Schedule F, Part 3 - Col (10). The assuming insurer would make a corresponding negat…
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There isn't such a formula given in the text and I doubt such a formula exists. In the wiki, I provided a simple formula that works just for the exam problems I referenced, but in general there are likely too many "nooks and crannies" that compri…
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Very emphatic answer @WKLANDRY. Thanks!
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Do you mean that if the subsequent loss experience was so bad that sliding scale contingent commissions payable could become negative? Then it would effectively become a receivable for the assuming insurer. In other words the ceding insurer would ow…
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According to COPLFR (which references SSAP 65): For coverage for a fixed period: * premium shall be earned over the term of the fixed period, the reporting entity shall establish an unearned premium reserve for the unexpired portion of the p…
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I know. I've been trying to fix this and sometimes everything is fine and sometimes it kicks you out after 24 minutes. Can you tell me the circumstance where it kicks you out? Is it when you are in the wiki and then you click on a quiz and then g…
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I see you're referring to the second answer in the examiner's report. You're right that the way the industry RBC percent factor was chosen changed from "worst-case" to 87.5% percentile so I don't know what they're talking about in the sample answer.…
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I understand the issue with tying like this: * Suppose insurer A offers auto coverage for $1,000 and HO for $300. * Suppose insurer B offers auto coverage for $900 and HO for $400. Suppose also that both require tying, so that a customer c…
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Ok, I see now. I think it's semantics really. I was saying that if the federal government retains all the risk, then they aren't really a reinsurer since they're essentially behaving like a primary insurer and their "staff" consists of the so-called…
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The second statement is definitely true, that the federal government is the main provider of primary flood insurance coverage. That's actually the first sentence in the summary section of the source text. Your first statement however, that the fe…
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Corrected. Thx.
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Yes, you're right. Thanks for letting me know. I have corrected it in the wiki. (I don't think that formula was used anywhere else. If I missed a spot, please let me know.)
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There is an example in the wiki article for Odomirok.15-P that I think might answer your question. It is a green button above "mini BattleQuiz 7". You can get to it quickly using the link below: * https://battleacts6us.ca/wiki6us/Odomirok.15-P#…
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That's very interesting. I kind of forgot about that when I read Odomirok. I also looked in the Freihaut & Vendettit reading to see what they said (since that's the reading specifically about risk transfer analysis) and I found this from section…
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Here's how I'm visualizing the quantities: (My picture didn't turn out too well so I hope you can make sense of it. I tried to use spaces instead of dots but multiple spaces get collapsed into 1 space.) |=====|=====| ||...........|| ...........|…
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Do you mean in this formula from the bottom of p137 in Odomirok: * provision = Minimum [Maximum [20% * (C) + 20% * (D) and 20% of (F)] and (G)] I wrote it a little differently: * provision = min [ 20% x MAX ( Pn90 + P^d , F ) , Cp ] …
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I don't think funds held is considered when assessing whether risk transfer has taken place. The key to risk transfer is that there's both U/W risk and timing risk, but funds held relates to collectibility which is in a different category of risk (c…
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If you haven't seen 2018.Fall Q19d, you should take a look. It doesn't specifically answer your question but it raises the same issue about whether a particular SAP vs GAAP difference supports the SAP or GAAP framework. (Also, some of what I discuss…
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Ok, I see. That was very observant of you. There is definitely an inconsistency with the source text. I checked the Errata for Odomirok and they don't mention this. Also, the value of the BA assets in table 87 is 0, so you can't check the calculatio…
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It's true - they do come up weird-ass problems sometimes!
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It is a bit confusing. Here is how you get it: 8250 * = sum of paid amounts from end of 2010 to end of 2011 on AY 2009 and AY 2010 * = (10,100 - 6,750) + (8,200 - 3,300) * = 3,350 + 4,900 * = 8250 16,450 * = sum of paid amounts f…