graham
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Special surplus cannot be used to pay dividends (along with various other restrictions). The implication of what you quoted seems to be that once the recovery exceeds the amount paid for reinsurance, the gain would be moved out of special surplus an…
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Hi @DestinP, Thanks for going back and including your comment. For every person who actually writes a comment, there are probably many others with the same thoughts. So what you wrote is definitely always helpful to others. In general, this ty…
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I suspect that general pool information wasn't accepted because that information by itself doesn't relate directly to the opinion. For example, just giving the pooling percentages wouldn't tell you anything about the validity of the reserving method…
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The short answer is that it's better to use what you know is correct. In other words, use the corrected version from the errata. You'll always be on firm footing if you do that. Then if there's an issue with the grading, your appeal is more likely t…
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Here's a trick I use for searching for these kinds of things. * Open the COPLFR source text * do cntrl-f to bring up a search box (this works in most applications) * type "notif" in the search box (don't type "notify" because it will miss all…
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Gr8!
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I see what you mean - it seems like Dodd-Frank potentially contradicts the Todd precedent but I don't know how to resolve this based on the syllabus readings. * Although not discussed in the syllabus, parts of Dodd-Frank have been nullified by …
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Schedule P, Part 7B is for assumed reinsurance.
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Yeah, it looks like I reversed "high deductibles" and "structured settlements". I've fixed it. Thanks.
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I can't say for sure because I've never been a grader, but I can offer some advice nonetheless: * First, you would likely get partial credit provided the grader can figure out what you're doing. * I'd say that to make sure the grader knows wha…
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This is one of those questions where you could get bogged down for far too long. And it's got so much information to absorb and process, your brain will be fried by the time you finish it. If it were me, I probably wouldn't have done the pro-rata…
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Sorry, that's a typo in the wiki. "Tying" should be under the Clayton Act. I've corrected it and we'll tweet it.
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Yes, that's correct thanks. Tying should be part of the Clayton Act (not Robinson-Patman). I've fixed the wiki and we will tweet the correction for the main page.
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Hey @Greg, glad this discussion was helpful. Kudos to @rwhiting for starting the thread.
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Nice! (I've linked the wiki to this post.)
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The Sherman Act was the original antitrust legislation from 1890, but it was too vague and big companies found ways to circumvent it and continue to engage in anti-competitive practices. The Clayton Act (1914) and Robinson-Patman Act (1936) were …
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The evaluation date (also called the valuation date) is the date the books close, usually Dec 31 if you're doing the annual statement. For example, any claims or premium transactions that occur on or before the evaluation date are included in the da…
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Q1: Yes, the 2 differences between a JUA and RF are: * who services the policies * how rates are set There are a few more details in the wiki page, but the source text doesn't really explain how RF sets rates other than noting that RF's…
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I think that's what was done. If you do the part (c) calculations in a slightly different order and apply the quota-share percentage first, you get: * net AY 2015 losses at yr-end 2015 = 80 x (1-70%) = 24 * net AY 2015 losses at yr-end 2016 = …
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Not quite. This was actually a bit tricky. The denominator of 40 (PHS) doesn't change from what was calculated in part (c). But the reason it's reasonable to use 10 in the numerator of IRIS 11, instead of 3 as in in part (c), is that if the reinsure…
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Yes, I was aware of that question from the 2019.Spring exam and I've discussed this issue with a few other people outside of this forum. Friehaut just flat-out contradicts itself between the text and the example in the appendix so there's no good wa…
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The way you wrote your formula does make more sense - putting the "base" as the 1st term and then the C/A/U part second. I inserted a link to your tip in the wiki at the end of the R4 section of the Odomirom.19-RBC wiki article. Thanks!
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There won't necessarily be a one-to-one correspondence between how quantities are treated between a rate indication and the annual statement since the purpose of each is different. The item "General expenses incurred" is taken directly from the IEE,…
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2 things: * They misstated the question. There are only 2 AYs not 3. It seems like a small thing but when you're stressed out in the middle of the exam, it can throw you off, so that's on them. * I see what mean when you say it looks like they…
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First, try clicking on the green "F" under IRIS 13 in the Reserve Ratios table in the NAIC.IRIS wiki article. This will bring up 2 pages from the source text that explain how mix change and premium volume affect IRIS 13. Or you can look at the fo…
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You are correct. It was not a well constructed exam question. The reason they told you the payment date is so you could discount the loss back to the contract effective date for use in the ERD forumla. It was just a way to make the question somet…
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I think the part of SSAP 62 they're talking about is the Q&A, specifically Q14, which is on page 29 of the SSAP 62 doc. The problem is that they don't define what they mean by gross premiums. So we have to go back to Freihaut where they say in t…
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The examiners were trying to trick you. The 4th bullet point says: * unearned premium reserves were calculated using the monthly pro-rata method This is from Exam 5 on pricing where 1/24 of the EP is earned in the 1st month a policy is writ…
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This is one of those things that I think is a bit unfair because it requires you memorize line items from the balance sheet. If you look at the section from Odomirok.8-9-IS with the balance sheet link: * https://battleacts6us.ca/wiki6us/Odomiro…
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Hi @Alice, I assume you're referring to Q17 on the 2019.Spring exam. Also I think you meant to say retroactive reinsurance (rather than retrospective reinsurance). What you wrote above is correct for SAP accounting treatment but you didn't mentio…