corysmithm
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But the examiners report for part b) was saying that the most common process was assessing insurers after an insurer goes insolvent? I am going to go with what you're saying but just wanted to make sure you were aware what the report was saying.
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Thanks! That makes sense. Out of my own curiosity I looked at example Notes to Financial statements and found that under Reinsurance note, Reinsurance Assumed and Ceded, there is an 'Additional or Return commission' section that has place to inp…
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Thank you. Where is the sliding scale commission disclosed then. In the Notes to Financial statements under Reinsurance section? And the wiki says the purpose for disclosing 5 largest commission (provisional) rates is to identify companies using …
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Okay maybe I understand it a little more. Please correct or confirm my thinking. There may be a sliding scale commission in place that would reduce the actual ceded commission returned to the reinsured if LR was high, which would reduce surplus r…
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So for the excess growth for each year, you use ****direct WP combined**** for all lines, but when you are calculating the actual excess growth charge, you use excess growth rate * ****net WP for CY**** * .225 ? Is this correct? Also, easier q…
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Thank you for the clarification!
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Thank you very much for doing this! Should be helpful for others that also come across this good problem
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Got it. Do you have an updated final answer to this problem based on the current syllabus that I can use as a check to see if I'm doing things correctly?
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In the wiki, it says the McCarran-Ferguson Act "exempts insurance from most federal regulation including antitrust regulation (not exempt from Sherman Antitrust act). Should my takeaway be that federal regulation applying exclusively to insurance…
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With updated syllabus not worrying about dividends, I got $8,800 as my final tax based income. Is this the correct solution? Or can i send my work and have it checked? Thanks!
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Got it. The insurer likely wants to charge too high of a rate for it to be reasonable for an insured, but with the government paying part of the premium, the insured and insurer both stay happy. Right?
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Now that I'm thinking about it some more, isn't it kind of backwards that private insurers that initially reject high-risk insureds still end up having to insure them if they are assigned to them? Is there no way for private insurers to avoid coveri…
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Super clear answer. Thanks!
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Can you explain what it means for policy to be serviced by a servicing carrier vs an insurer? What is a servicing carrier exactly? I haven't seen that terminology before
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Sorry, pretty basic question but I would like to understand this. I'm confused on collateral being "posted".. is the collateral posted from the reinsurer as a backstop for the reinsured? So for letters of credit with confirming banks, if reinsurer d…
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Yep, I know It wouldn't be tested but I was just curious if you had any comments on it since I'm pretty sure it is related to fraudulent letters of credit, and I'm trying to get my head around the concept and how it all fits into Schedule F. No worr…
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What exactly makes up finance charges not included in premium? Charges makes me think another expense. Thanks
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Just trying to solidify my understanding: Are ceded reinsurance reserves basically just unpaid losses that company is expecting to cede to reinsurer? So it is a liability now as it is the unpaid portion of losses, but can still be thought of as a…
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Perfect, thanks! I should have taken a look in Odom first but this really helps my understanding.
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Question about calculation of bonds in part a... What is the formula for what bond value to use? I need a refresher on this and don't know what section to refer to. Thanks!
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Could you further explain "nature of coverage" that should be considered? Your example was only about the tail but what else could fall under nature of coverage? Thanks!