Feldblum.Surplus

Updates in Fall 2023 The only syllabus change for 2023-Fall is the pages you're responsible for: → Previously you had to study the entire reading, pp. 1-16 → Currently you only have to study pp. 1-10 The material on double-taxation on pp. 11-16 has been removed and this was a a substantial portion of the testable material so this is now a much easier reading to study. The material from pp. 1-10 is covered in Odomirok.6-7-BS and Odomirok.8-9-IS so this Feldblum reading provides a good review.

Reading: Statutory Surplus: Computation, Pricing and Valuation,” CAS Study Note, June 2003, pp. 1-10, including errata. Candidates are not responsible for the endnotes.

Author: Feldblum, S.

  Forum

Study Tips

This reading is a good review of concepts already covered in Odomirok.6-7-BS and Odomirok.8-9-IS.

Estimated study time: 3 hours (not including subsequent review time)

BattleTable

Based on past exams, the main things you need to know (in rough order of importance) are:

• miscellaneous items from related chapters (see footnotes to BattleTable)

reference	part (a)	part (b)	part (c)	part (d)
E (2018.Spring #12)	invested capital: - calculate x	PV(future income): - calculate x	shareholder preference: - liquidation/continuance x
E (2017.Spring #15)	surplus: - calculate 3	impact on surplus/income: - ABs 2 → 90 days past due
E (2015.Spring #12)	statutory income: - calculate 1	reserve adequacy: - supporting exhibits

^x This type of calculation problem is no longer on the syllabus.

¹ This is a good review of the statutory net income material from chapters 8 & 9 of Odomirok.

² AB's refers to: uncollected premiums and Agents’ Balances in the course of collection

³ Recall from chapter 6 of Odomirok that another way to calculate surplus is to calculate assets MINUS liabilities. But this means you have to be good at recognizing which line items are assets MINUS liabilities and which are neither. (You can learn this by practicing the location quiz from quiz #2 available here).

Full BattleQuiz You must be logged in or this will not work.

  Forum

In Plain English!

Review: Balance Sheet and Income Statement

The exam problems in quiz #3 below are a good review of Odomirok material that you've already covered. Make sure to pay attention to the footnote under the BattleTable. I've copied it below:

• Recall from chapter 6 of Odomirok that another way to calculate surplus is to calculate assets MINUS liabilities. But this means you have to be good at recognizing which line items are assets, which are liabilities and which are neither. (You can learn this by practicing the location quiz from quiz #2 available here).

mini BattleQuiz 1 You must be logged in or this will not work.

Full BattleQuiz You must be logged in or this will not work.

  Forum

Problem Type: Liquidate or Continue Operations

This section has been removed from the syllabus starting 2023-Fall (shout-out to MM!)