Commuted Reserves
If an exam were to ask "find the reserves commuted" would that be the primary's ceded reserves or the reinsurer's gross resersves (only differences is the change from reserving philosophy)? Or are they both considered commuted reserves & they would have to clarify the perspective they are looking for?
Comments
In a question that asks to back into the reserves commuted from another relevant item, the perspective would have to be clarified. They may also ask for the range of acceptable price, for which reserve amounts from both perspectives are needed. The wiki walks through such an exercise in detail.