Klann Pop Quiz Old Answer - Revision history

Graham at 13:15, 9 April 2023

2023-04-09T13:15:22Z

Graham at 13:15, 9 April 2023

2023-04-09T13:15:07Z

Graham: Created page with "This answer referenced the effect of commuting the losses while ignoring how the price of the commutation would impact the taxable income. As such, the revised answer is a bet..."

2023-04-09T13:12:42Z

Created page with "This answer referenced the effect of commuting the losses while ignoring how the price of the commutation would impact the taxable income. As such, the revised answer is a bet..."

New page

This answer referenced the effect of commuting the losses while ignoring how the price of the commutation would impact the taxable income. As such, the revised answer is a better answer to the Pop Quiz.

:* The primary insurer's tax benefit '''pT''' should be '''positive'''. In a commutation, the primary insurer is taking back a group of claims. That causes a shift in their balance sheet from assets to liabilities, which is a shift from taxable to non-taxable income.
:* The reinsurer's tax benefit '''reT''' should be '''negative'''. In a commutation, the reinsurer is getting rid of a group of claims. Their balance sheet shift is the opposite from that of the primary insurer. The reinsurer's balance sheet shift is from non-taxable income to taxable income. ''(So for the reinsurer it isn't really a tax benefit; rather it's a tax penalty.)''

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-This answer referenced the effect of commuting the losses while ignoring how the price of the commutation would impact the taxable income. As such, the revised answer is a better answer to the ''[Klann.ReinsComm#Klann_Pop_Quiz | Pop Quiz]]''.
+This answer referenced the effect of commuting the losses while ignoring how the price of the commutation would impact the taxable income. As such, the revised answer is a better answer to the ''[[Klann.ReinsComm#Klann_Pop_Quiz | Pop Quiz]]''.
 :* The primary insurer's tax benefit '''<sub>p</sub>T''' should be '''positive'''. In a commutation, the primary insurer is taking back a group of claims. That causes a shift in their balance sheet from assets to liabilities, which is a shift from taxable to non-taxable income.
 :* The reinsurer's tax benefit '''<sub>re</sub>T''' should be '''negative'''. In a commutation, the reinsurer is getting rid of a group of claims. Their balance sheet shift is the opposite from that of the primary insurer. The reinsurer's balance sheet shift is <u>from</u> non-taxable income <u>to</u> taxable income. ''(So for the reinsurer it isn't really a tax benefit; rather it's a tax penalty.)''

@@ Line 1: / Line 1: @@
-This answer referenced the effect of commuting the losses while ignoring how the price of the commutation would impact the taxable income. As such, the revised answer is a better answer to the Pop Quiz.
+This answer referenced the effect of commuting the losses while ignoring how the price of the commutation would impact the taxable income. As such, the revised answer is a better answer to the ''[Klann.ReinsComm#Klann_Pop_Quiz | Pop Quiz]]''.
 :* The primary insurer's tax benefit '''<sub>p</sub>T''' should be '''positive'''. In a commutation, the primary insurer is taking back a group of claims. That causes a shift in their balance sheet from assets to liabilities, which is a shift from taxable to non-taxable income.
 :* The reinsurer's tax benefit '''<sub>re</sub>T''' should be '''negative'''. In a commutation, the reinsurer is getting rid of a group of claims. Their balance sheet shift is the opposite from that of the primary insurer. The reinsurer's balance sheet shift is <u>from</u> non-taxable income <u>to</u> taxable income. ''(So for the reinsurer it isn't really a tax benefit; rather it's a tax penalty.)''