Fall 2018 #22a

For the Opinion here, why do the examiner's reports make no mention of unearned premium for long-duration contracts? If there is no mention of long-duration contracts do we just assume there aren't any or would we have to explicitly state that before proposing our opinion paragraph?

Comments

  • If there's no mention of unearned premium reserves for long duration contracts in the question, then you can ignore it. The language in the opinion pertains to items for which the actuary is actually expressing an opinion. If there were no unearned premium reserves for long duration contracts then they cannot express an opinion.

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