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Yes, these are the main ones. For calculating Provision for Reinsurance, the problem would usually give you what the collateral is, rather than make you look for it. Although, never say never.
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In short, it can mean both. I note that the wiki gives the following options as company action: -explain how to raise needed capital -explain how to reduce operations to save money -explain how to reduce risks to lower RBC charges The RBC…
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I think it simply means standard 29 addresses prepaid expenses alone. Yes, these other items are used in the calculation of prepaid expense, but this particular standard is not for the accounting of these other elements.
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I found this for Maine: https://legislature.maine.gov/statutes/24-A/title24-Asec2168-A.html Other states may also have a similar approach. I think the level of control of the tying firm over the market is key to defining an act as tying.
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Sure, good luck.
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incurred1 - incurred0 = paid1 - paid0 + reserve1 - reserve0 = reserve1 - [reserve0 - (paid1 - paid0)] Calendar year paid reduces the original reserve. The difference of this reduced original reserve and the ending reserve is considered the reser…
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Because (paid1 - paid0) is loss paid in 2016 on AY2015. You don't need the paid in 2015 on AY 2015. One-year development is on all prior years. Because the company started business in 2015, you need to focus only on AY2015 to get one-year develop…
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In the wiki, these two questions reference the Baribeau article. The wiki notes of the Baribeau article include regulation of SIFIs. The sample answers are generally not exhaustive of all possible answers.
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The yield is an after-tax concept. By dividing by (1-taxrate), you make it gross of tax.
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Where exactly do you find the prepaid expense formula? I don't see it in the IEE section.
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It would make more sense that way. . . However, IRS discounts incurred loss to the beginning of the year-in-question, just a fact you have to know.
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RBC does not discount reserves in the sense of SAP reserves not being discounted, but if you remember, that is an ambiguous point on the syllabus. Recall Graham's answer to you on that topic: https://battleacts6us.ca/vanillaforum6us/discussion/60…
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Sure, good luck.
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Surplus is not a component of income. Surplus = Assets - Liabilities. Income = Premium - loss - expense - ph dividends. Surplus is a snapshot, as-of concept. Income is calculated for a calendar year.
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Sure, good luck.
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This is how the wiki describes ERD: https://battleacts6us.ca/wiki6us/Freihaut.Reins#:~:text=Calculate%20ERD%20(Expected%20Reinsurer%20Deficit)%3A%20ERD%20%3D%20prob(NPV%20reinsurer%20loss)%20x%20NPV(reinsurer%20loss)%20/%20(reinsurance%20premium)…
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Catastrophic events, like hurricanes or earthquakes, are effective on Property lines, but not on Liability lines. You would need to further state that you are assuming it's a Property contract. With these assumptions, that answer may be correct. …
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Yes, this is an equivalent way of expressing CR^63(recov).
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That answer goes this way: "Require more collateral; impact: the unsecured reinsurance would be lower." I think you understood it this way, because you referenced the correct part of the provision formula. Yes, this answer is for the case w…
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The latter is correct: (total net) = A(net) + B(net) + C(net). Non-schedule-P Gross keeps track of who assumes what. The non-lead companies "re-assume" their pooling percentage of the total net, and total net is the amount after all external cess…
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Yes, uw income does include deductions for uw expenses, as stated in the IS section. The fact that uw expense and policyholder dividends are not found in the TBI formula is an omission. Note that some old exam problems expected you to calculate tax …
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UW income does include deductions for uw expenses, as stated in the IS section. The IL notation in the tax section includes loss and LAE. The fact that uw expense (and policyholder dividends) are not found in the TBI formula is an omission. Note tha…
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This is an error in the solution, but it doesn't affect the gist of the solution, since the COR is well below 100% either with or without subtracting Investment Income Ratio. For COR, the LED formula is correct; you don't need to subtract Investment…
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The statement in the tax section is meant only for tax purposes. Own Schedule P is still an option in deriving cash flows for GAAP fair value. Note that these involve determining cash flows, not their discounting. Federal tax and GAAP fair value …
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Sure, good luck.
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Two of the old exam problems are footnoted to be outdated with respect to dividends received tax: https://battleacts6us.ca/wiki6us/Odomirok.26-Taxes#:~:text=1%20There%27s%20a%20little,on%20the%20source%20text. For other problems that were not …
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Reinsurer's collateral serves to vouch for funds owed by reinsurer to the primary, and reinsurer's rating may impact this item. Reinsurance provision is capital that primary has to hold to cover for the risk of reinsurer defaulting. They are two dif…
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It is not a 140% surcharge. The government levies mandatory surcharges on future premiums to recoup 140% of a particular year's loss. This is not related to that year's loss of 200M, which is what they ask about.
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Which question is this in regard to please?
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Ok then.