Fall 2012 Q 29
Why is UEPR for Long Duration Contracts included in the Reserve calculation for AOS? I thought that just includes L+LAE reserves?
edit: Is that why the BattleTable says the answer is outdated?
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Why is UEPR for Long Duration Contracts included in the Reserve calculation for AOS? I thought that just includes L+LAE reserves?
edit: Is that why the BattleTable says the answer is outdated?
Comments
If long duration contracts are included in the scope and the actuary opined on them in the SOA then they must be included in the AOS also. These long-duration contracts would be considered premium liabilities.
I cannot remember why I listed that exam problem as outdated. I have removed that footnote.
Hi Graham, in F14#23a, per the solution, is excluding the UEPR for Long Duration Contracts a correct option for this problem too? Thank you
In that problem, you're given information on UEPR for long duration contracts so it would have to be included. (In other words, excluding it is not an option.)