S14Q3b

patbaker12patbaker12
in NAIC.Solvency

Hey Graham,

I was reviewing the examiners report and it looks like the response for part b is just a regurgitation of the possible Solvency Regulation answers from part a above. While it's not a super difficult question to BS a response to, I was wondering if there was a correct list of possible answers that would receive full credit based on all the combinations of regulatory frameworks listed in part a. If not would you mind spending a little time to think about this one?

I've always found it really useful to get a full understanding these absurdly abstract questions that you could probably write a dissertation on. It tends to help me think a little differently and apply some creativity when answering other related questions. I don't think that this type of question is one that is a complete one-off as globalization isn't slowing down.

Comments

  • grahamgraham

    Hey Pat,

    I must apologize in advance because I'm not sure I can give you a complete answer to your question. The question you pose, answers to part (b) corresponding to all possible combinations of answers to part (a) would be quite an undertaking. I had actually given thought to this particular exam question and there's a fairly detailed discussion in the wiki. I don't know if expanding on that in the way you ask is something I can do in this forum because it would go so far beyond what would be required for the exam but I can offer a couple of hints for how you could maybe go a little further if you'd like to pursue it:

    • You can search the digital version of the source text for instances of the word "global" using cntrl-f. I did this and there are 8 instances. Then read the nearby sentences. That indicates what material the authors felt related to the globalization theme.
    • Try to organize the answers in the examiner's report into something shorter and more coherent. That's basically what I did in the wiki. The examiner's report answers here are just crazy. I know they sometimes like to ask open-ended questions that don't have a single correct answer but this question was just too open-ended.

    I admire your desire to go deeper into the material because that's the kind of thing that's valuable on the job. I have to provide a word of caution however when you're studying to pass an exam. I hate to say it, but passing the exam and learning the material are often not the same thing. I think I would leave this alone until after the exam. It seems like you've spent time thinking about this carefully so in terms of the exam, you've probably gotten everything out of it that you can reasonably expect to get.

  • lkto22lkto22

    Hi for b) one the sample sol is "Premium tax is collected by domicile state only for non-admitted insurers", I thought this is from NRRA, does DFA have the same provision? My apologies that I haven't got to DFA yet.

  • Staff - ACStaff - AC

    Premium tax is not mentioned in any of the sample answers, for any of the parts. Premium tax is not quite related to any of the four topics discussed in the question. Could you be referring to another question?

  • lkto22lkto22

    I am sorry, I was asking for 2014 Fall #3 part b not spring

  • Staff - ACStaff - AC

    NRRA is part of DFA.

    https://battleacts6us.ca/wiki6us/NAIC.Solvency#paragraph_5-57:_NRRA:~:text=NRRA%20is%20the%20Nonadmitted%20%26%20Reinsurance%20Reform%20Act%20of%202010%20and%20came%20up%20in%20part%20(c)%20of%20the%20problem%20below.%20It%20is%20part%20of%20Dodd%2DFrank%20and%20applies%20to%20nonadmitted%20insurance%2C%20which%20includes%20surplus/excess%20lines%20insurance%20and%20reinsurance.

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