Fall 2016 Q13
The Excel version of the Fall 2016 exam seems to be missing the title of the top table: 'Reinsurance Recoverable on Paid Loss and Paid Loss Adjustment Expense'
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The Excel version of the Fall 2016 exam seems to be missing the title of the top table: 'Reinsurance Recoverable on Paid Loss and Paid Loss Adjustment Expense'
Comments
Corrected, thx!
Is it common that Pn is greater than Tn? I got mixed up on this question because I thought that the 140 should have been 143 (=135+8)
How do you mean? The Tn in this problem is greater than Pn for both reinsurers.
Isn't Pn 135+8 from the red circles in the picture attached and 140 is Tn![]
Never mind as soon as I posted this I realized the included in total comment
Ok then.
Q1, are the following naming conventions matching right? -- P^d_90 is (ScheduleF part3) col45; P^n_90 is col 47; P^n is col 46
Q2, For reinsurer B's solution, in "recoverables NOT in dispute" table, I understand that T = T^n + T^d thus 140 = 132 + 8 across "in/not in dispute" tables, but I'm confused to see T^n = 132 < P^n = 135. Generally, I don't understand relationship between T^n and P^n... should it be : (T^n) total reinsurance recoverable not in dispute = (P^n) recoverable on paid loss&LAE not in dispute + ()recoverable on Reserve/IBNR not in dispute ? -- thus I thought T^n should always be greater than P^n...
thank you !
Correct on Q1. We will discuss your Q2 and get back to you.
For your Q2, you are right that there is a discrepancy in what you point out. Graham says that this is how the numbers worked out when he rearranged the givens of the original problem to work them into his version. So, don't be concerned about this discrepancy. Elsewhere in similar practice problems, you will find that T^n is consistently bigger than P^n.
It seems that Alice solution to 2016.Fall #13 (the Odomirok.Ch14_(16F.13)_v5.pdf) has mixed up reinsurer A and B.
Labels are now fixed. Thanks for pointing it out.