Total Adjusted Capital
Will we ever have to calculate the total adjusted capital? I did not see a formula for it anywhere.
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Will we ever have to calculate the total adjusted capital? I did not see a formula for it anywhere.
Comments
Sorry just read where the formula for this is! Missed over it my first time
the formula in Alice's 4th day is: TAC = PHS - (non-tabular discount) - (tabular discounts on medical reserves)
I'm not seeing the abbreviation PHS earlier in this article, could you provide it here?
is it Policyholder Surplus?
Yes, it is Policyholder Surplus
I am curious how the non-tabular discount in the TAC formula is calculated, though i expect it should be provided in the question. Can anyone explain a bit more?
The actual discounting procedure is not in the syllabus.
Tab/nontab discounting is a bit of a blurry issue and it is relevant to multiple sections. The GAAP section links to this forum thread where we covered this ambiguity:
https://battleacts6us.ca/vanillaforum6us/discussion/605/statutory-loss-reserves-are-booked-at-their-nominal-undiscounted-value