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  • It is Fall 2017Q10. In this question, they gave us Net Unrealized Capital Gains less Capital Gains Tax and Net Deferred Income Tax.
  • This concept is confusing to me as well. I think in one year, they gave us Deferred Income Tax (DIT) and Net Unrealized Capital Gain less capital tax. In the examiner report, if I interpret correctly, they explain that the capital tax of unrealized…
  • Thanks for the quick answer, Graham. I was thinking about the given probability as how you mentioned above. But then the examiner report and the way the table is structured made me feel like I should think of a cumulative distribution.
  • The $27.5B retention is confusing to me. Does this mean if industry losses are below $27.5B, private pays 15% of total losses, and government pays 85%. But then government will recoup its payment by requiring private to pay back 133% of its WP/EP (c…
  • The manual says "Gross premiums entail all premium paid to the reinsurer before the consideration of any payments back such as ceding commissions." When you say 'not included', does this mean we just basically use Gross Premium Paid instead of Gr…
  • Thanks, Graham! I like the way that you made a connection between chapter 25 and chapter 22-23 concepts.
  • This maybe a stupid question but what is the difference between the commutation prices in Fall2017 Q27 and Spring2016 Q27? The way I interpret the solution is that either one of the party will be beneficial in the case of Fall2017 Q27 problem. An…
  • thanks a lot. Your explanation makes sense to me now. I was calculating the FV with discounting using 100/1.1 and 100/1.01 instead, and that's why the solution did not make sense to me at the beginning.
  • Thanks. Your explanation added insights to my understanding of the topic, but I still have trouble to understand the solution (my issue). Can you explain further why FV of reserve can be higher than the statutory reserve when the investment yield…