testability of discount factor for tax purposes
Since the actual calculation of the discount factor to be applied to undiscounted loss reserves for tax purposes is no longer testable, would a quantitative problem for this material just be them giving us the discount factor or discount rate & payment pattern and asking us to find the discounted loss reserves for tax purposes?
Are the questions from this material likely to just be qualitative now that the calculation for the discount factor is no longer testable?
Comments
What the highlighted wiki note means is, the derivation of the discount factor from Schedule P Part 1 is no longer testable material. You may still get quantitative problems where the discount factor is a given.