Fall 2015 #25 a

OwarnockOwarnock
in COPLFR.SAO

The question is to identify four items the actuary should disclose in the SCOPE paragraph. In the sample answers, Intercompany pooling is not included. Would that have been counted as incorrect? If so, why?

Comments

  • grahamgraham
    edited September 2022

    I believe that would be given credit. This exam question is discussed in the wiki here:

  • dallinbiorndallinbiorn

    In the examiner's report for part a, they list a common error "Unpaid loss reserve—net or gross or Unpaid LAE reserve—net or gross". And no where in the list of accepted responses does it mention anything about "reserve items in opinion". In the wiki, step 2 lists "reserve items in opinion" as an answer from the Odomirok 16-17 wiki, but is this really considered a "disclosure" like part a asks for? Or can I look at it as section 3.1 in COPLFR is the SCOPE (reserve items) and sections 3.2-3.9 are the "disclosures" about the SCOPE? Thanks!

  • Staff - SJStaff - SJ

    I agree that the Examiner's Report could be a bit more clear. Here's my interpretation:

    • The "Reflect Disclosure Items Exhibit B" in the ER is akin to "reserve items in opinion," from Odomirok 16-17 but....
    • You wouldn't list the actual dollar amount of reserves in the scope section, which is what I think the common error of "Unpaid loss reserve..." is referring to.
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