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Sure, good luck.
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Sure, good luck.
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Your understanding of why it's called "reserve development" is correct.
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From Odomirok page 329: In Schedule P reserves can be stated either gross or net of anticipated salvage and subrogation. If the reserves are stated net, column 23 in Schedule P discloses the amount of anticipated salvage and subrogation. The …
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Real estate asset is mostly admitted. There may be a non-admitted portion of it, but Odomirok's Cpt 7 does not provide information on this. When given real estate asset as in this case, it is safe to assume it is admitted.
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Ok.
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UEPR is a reserve figure, evaluated as of end of a given year. EP = WP - Change(UEPR). The "calendar year net UEPR balance" phrase they use in the answer key refers to change(UEPR). The sum of the change(UEPR) from 1/1/2016 to 1/1/2017 and …
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Sure, good luck.
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Yes, correct. The excess of written premium over (cash+admitted deferred agents' balance) may be in non-admitted deferred agents' balance.
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"Adverse development" generally refers to ultimates. Plus, the problem tells you to assume this claim does not get any IBNR. So, it means the case reserve became 600K, as you say. The "and" does not alter this flow.
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When they put it as "adverse development" without any further specification, you need to assume this is incurred development, i.e. development of "everything." Here, they further give that the claim does not touch IBNR. So, you will be assuming t…
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Yes, correct.
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Sure, good luck.
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Sure, good luck.
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Federal income tax equation above is correct. "Gross income" would be synonymous with "revenue," i.e. premium. "Net income" is premium net of loss and expense.
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Tax refunds are not related to tax-based income calculation. Where do you find it said that they get a tax refund only later?
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The Odomirok Tax chapter does not mention underwriting expenses and the wiki formula follows the discourse of this chapter. In fact, as you say, regular and tax-based income are calculated the same way, except for these adjustments, i.e. net of expe…
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PDR is different from UEPR. It is explained in Odomirok Cpt. 22.
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It is more likely that it is the rejecting insurer, not the insured's agent, that forwards to the JUA, because the insured must not be aware of the transfer. The answer key may be in error on this point.
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This exam question was modified for the battle card, and a suitable answer provided.
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Yes, correct.
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According to the S&S section of Odomirok Cpt. 22, Sch P reserves can be gross or net of anticipated S&S. If they are net of S&S, the anticipated S&S is also reported in its dedicated column. In this question, a non-zero anticipate…
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Sure, good luck.
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investment income + realized capital gain = Investment gain attributable to insurance transactions + investment gain attributable to capital and surplus
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All other lines will use calendar year for earned premium and accident year for loss and LAE, except if the line is marked as "claims-made", in which case it will use report year for loss and LAE.
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A type I event must be recognized in the Financial Statement. A type II event must be disclosed in the Notes to the Financial Statement.
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In SAP, this is so.
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Both the current-year and the prior-year surplus figures that go into IRIS 7 need to be netted of surplus aid. IRIS 11 & 12 are not recalculated, because they are not directly related to surplus adequacy, which is what IRIS 4 measures.
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This is incorrect. UEPR is the reserve amount as of end of the calendar year of the statement. Policy Year is not related to this.
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This understanding is correct.