2019 Fall Q15 - Total Recoverables

adielsanchezadielsanchez
in Odomirok.14-F

I made one of the common errors listed on the examiner's report.

Given in the problem:
The second bullet point states "recoverables on Loss & LAE IBNR 750,000" and the next line states "table include all 2018 reinsurance recoverables".

I thought that amounts listed in the table would be included in the 750,000. Is there something in the wording of these two that tells us that they are mutually exclusive? I get mixed up on the wording from time to time. Thanks!

Comments

  • Staff - ACStaff - AC

    The table is a schedule of payments, with pertinent dates. It will only cover recoverables on paids, not on reserves.

  • adielsanchezadielsanchez

    Ok. I think I see the issue, I misinterpreted "Loss & LAE IBNR" from the second bullet point as "Loss" & "LAE IBNR"; that is, that the IBNR only pertained to the LAE and that "Loss" included all losses.

  • Staff - ACStaff - AC

    No, that phrase means IBNR of loss and of LAE.

  • EmmaEmma
    edited March 9

    In the formula sheet, T= Total Unpaid Recoverables, but the Examiner's report includes paid recoverables, as well. Is the formula sheet incorrect? Should it be: Authorised Reinsurer Slow Paying = 20% x max (T+P-C, Pn90 + Pd90)

  • grahamgraham

    We will look into this and get back to you. Thanks.

  • grahamgraham

    Hello @Emma
    The cheat sheet has been corrected. Thank for pointing this out.

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