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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.
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As per my message above, "prepaid reinsurance premium" is a term used in lieu of ceded unearned premium. As of a given point in time, there will always be a certain portion of paid reinsurance premium that is unearned, due to portion of contract te…
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The difference between statutory and tax accounting's discounting of loss reserves most likely results in higher taxes for the period in question. However, the unwinding of this discount in future periods brings tax benefits, which are measured in D…
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You need to remove UW expenses to get to Income. It is not a part of TBEP, Graham just threw it in with TBEP to make sure it was removed in the resulting Income.
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You are right, this treatment is outdated. The calculation is now undertaken in Schedule F Part 3.
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It most likely goes under cash, like premium.
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UBI is "usage-based insurance." Usually Auto.
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It goes like this: Gross= Direct + Assumed, Direct = Net + Ceded. Your items 1 and 2 are correct, but things like "net and assumed" and "ceded and assumed" are not in common usage.
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Whether insurance price optimization violates the Clayton Antitrust Law would depend on factors such as: Market Power: If insurers with significant market power use price optimization to unfairly exclude competitors or maintain dominance in the m…
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A run-off agreement can be retroactive, prospective, or both, depending on the parties' intention. A novation usually replaces a party to the original contract. Retro/pros status depends on the underlying contract.
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Yes, correct.
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IEE allocations are performed both direct and net of reinsurance, in their respective parts.
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Correct.
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The difference is claims having occurred versus claims being yet to occur. With the former, you are only reinsuring reserving risk. They may be trying to acknowledge this in the separate accounting treatments.
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1401 is the write-in surplus line where it goes, instead of going into line 39, Surplus.
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If they ask you to calculate the bond size charge, they may expect you to know the weighting scheme for the bond size factor.
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Provision for reinsurance is like a reserve for reinsurance that may be uncollectible. It's a liability in that sense.
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Yes, it needs to be subtracted, to stay consistent with Graham's convention in his Sep 2023 post above.
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IRIS 4 text instructs to adjust surplus specifically this way. It makes sense. You need to take out surplus aid from both the starting and the ending surplus to get a comparison excluding surplus aid.
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There is nothing special about 2017-Spring-Q20-part b. They just failed to observe the mid-year convention in their answer.
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No, that's the industry retention.
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Graham has descriptions of both pros. and retro. reins. above. What in there makes you think retro. is not really considered as a valid reinsurance? Portfolio reinsurance is distinct from retro. reins.. From Odomirok: Portfolio reinsurance is …
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That must be in error.