Staff - AC
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There is a GAAP asset item for DAC. Part of the explanation above refers to the income statement.
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The examiner answer to part a JUA is wrong.
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The pop quiz answer you quote above says pT should be negative, which is right.
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Sorry, I confused the direction of commutation. The wiki answers seem to be the wrong way around. We will get back to you on this.
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"Severity of loss" means claims, not underwriting loss that is tested with the 10% in the rule. In the case of $5M in claims, there is no underwriting loss. Each "10%" has to be fulfilled independently. Since the prob of the case of having an und…
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This criticism is specifically for unauthorized reinsurer provision. Certified reinsurer is now a third category of reinsurer.
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Having a general sense is helpful. You may need to know if a given item is an asset or a liability, or how different items are used to arrive at income. Knowing the line numbers of specific items is not expected.
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When the price exceeds the commuted discounted reserve, the amount paid for commutation is greater than the amount that liability is reduced by. So, income is reduced, and there is a positive income tax benefit. I don't see your attachment here.
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I don't understand what is meant by equity from the perspective of the individual consumer. I don't find this being discussed in the text. The equity of a texting variable hinges on whether data can be collected for texting while driving. You are…
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Yes, they could.
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Sure, good luck.
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While trying to unravel whether low-income consumers have a propensity to shop, they are straying from the core topic. Propensity to shop is one of many factors playing into price optimization.
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Columns 12 and 25 of Part 1. But not for Summary, because claims may overlap across lines.
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This is correct, based on the source. Liability item is as we know it. Contra-liability item is not quite asset or liability. . .You are not prepared to reduce you liability for it, nor to consider it an asset. Ceded retro gets its own home in it…
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Yes, you've got it now.
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IRIS refers to that same location in Schedule P when it says "reserve development."
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This comment mainly refers to concerted efforts to understate liabilities at times of hardship, which may reflect as increase in surplus.
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Yes, it is ordinarily line-specific, but here, it is given that it's the same for all lines.
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Sure, good luck.
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Yes, "paranthetical amount" means the amount in this statement in parantheses in Line 9: (after deducting unearned premiums for ceded reinsurance of $1,052,590,102 and . . . ) This amount is subtracted from total UEP to yield Line 9's value.
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The rule is 10-10: at least 10% chance of loss of 10% or more. The former 10% is the probability of loss.
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The EPG explanation on p. 294 says it is calculated the same way as for R4, but for certain differences. The EPG explanation on p. 285 (for R4) specifies that growth is calculated on gross written premium. In the problem, you are given direct premiu…
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* The ".01" in the first answer is a typo. It is the correct ".05" in the second answer. * The rule is that half the charge for reins recoverable is applied to the Credit Risk component, and the other half to the Reserve Risk component (R4).
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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 …