Relevant Comments Mnemonic

PaulKoryPaulKory
in Odomirok.16-17-SAO

Anyone have one to recommend?

Currently trying MR BICUR ("Mister Biker") for Materiality, RMAD, exhibit B, IRIS ratios, Changes, UEP (on long-term contracts), Reinsurance.

So I guess I can now AWARD DREARIRR Opinions to MR BICUR?

Comments

  • grahamgraham

    I like the hint but I just want to make sure I know exactly what question this mnemonic is providing the answer to...?

  • PaulKoryPaulKory
    edited January 2021

    Whoops, double-post.

  • PaulKoryPaulKory

    Got it from Odomirok.16-17-SAO: All Qz-4 Ch 16 relevant comments: identify the items required in the RELEVANT COMMENTS section of the SAO

    Helped with 2016 Fall 23 b when it asked for four items from Relevant Comments not including the easy choices of materiality standard and RMAD.

    Or if you meant the last part, that was just me trying to cram all my ISOR mnemonics into a sentence :tongue:

  • grahamgraham
    edited January 2021

    I meant the Mr. BICUR hint. (Pronounced Mr. Biker) Just so it's clear to everyone, here's the breakdown for the required items in the Relevant Comments section of the SAO.

    • Materiality
    • r is for RMAD
    • B is for Exhibit B
    • I is for IRIS ratios
    • C is for Changes in methods or assumption
    • U is for Unearned premium
    • R is Reinsurance (retroactive and uncollectible)

    Note that this is slightly reordered from the the BattleCard answer. And the R for Reinsurance counts twice which is why there are only 7 items (versus 8 items in the BattleCard answer.)

    Thanks @PaulKory!

  • ulyssesulysses

    Can you explain what the Exhibit B disclosure is in relevant comments?

  • grahamgraham
    edited December 2022

    It's a little confusing because there is something called "Exhibit B" as part of the SAO but Exhibit B is also discussed further in the Relevant Comments. Take a look at this PDF showing an example of an SAO. The last 2 pages show all the Exhibit B disclosures.

    But the "Relevant Comments" section of the SAO also contains further discussion of certain items from Exhibit B. For example, item (#11) in Exhibit B provides values for asbestos and also environmental liability:

    Then the Relevant Comments section of the SAO provides a more detailed discussion of these numbers. And it's the same idea for certain other specified items from Exhibit B: the numbers are provided in Exhibit B but the discussion of those numbers is in the Relevant Comments.

  • ulyssesulysses
    edited December 2022

    This makes sense, thank you so much for clarifying. However, if an exam question asked for relevant comments disclosures, would 'disclosures from Exhibit B' be an acceptable answer? I would think the examiners would expect something more specific, such as 'disclosures of A&E exposures' as you listed in 11. above.

  • grahamgraham

    I don't think all disclosures from Exhibit B would be acceptable if the question asked about the Relevant Comments section. Like you said, they would likely be looking something more specific.

  • charles7276charles7276

    I'm a little confused on this point. One of the disclosures in Relevant Comments is covering the items 8-14 of Exhibit B (item #3). One of those items (#13) is long duration contract reserves. Why then is it listed in the wiki/battle cards as a separate item (#8) in the Relevant Comments.?

  • grahamgraham
    edited January 26

    Apologies for the delay in answering. Personal emergency. I will post an answer on Friday, Jan 26.

    Friday Jan 26, 2024

    • There is no significance to the difference in numbering. Exhibit B numbers the disclosures from 1 to 13. But in the BattleCard, I didn't list all the disclosures, just a selection of the most important. For example, in the BattleCard, I didn't list the "Name of Actuary" because that's pretty obvious - so that's why the numbering looks different.
  • charles7276charles7276

    Sorry, I didn't mean why the numbering changed. My question was why is it being listed as a separate item/category in the Relevant Comments section when it should fall under the Relevant Comments item: Disclosures in Exh. B. Sorry if that seems nit picky, just trying to get all the overlapping items between the different sections straight.

  • grahamgraham

    Chapter 5 of the COPLFR source text, which covers the Relevant Comments section of the SAO, has a section on long duration contracts. In that section (see screen shot below) they mention that the relevant comments regarding long duration contracts are found in Exhibit B:

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