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There may be overlap of similar topics in the same question.
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Sure, good luck.
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You start out calculating R4 based on the reserves. You then add to it half of the reinsurance recoverable charge, under the condition described above, to arrive at the final R4. "unpaid LALAE portion of R4" is a term used to signify the portion …
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Sure, good luck.
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Solution guides are in the links in this table in the wiki: https://battleacts6us.ca/wiki6us/Klann.ReinsComm#:~:text=I%27ve%20reworked%20the%20solution%20to%20part%20(b)%20from%20the%20examiner%27s%20report%20for%3A%20(See%20table%20below%20for%2…
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15% is being applied to the ceded premium of 500, 50% quota-share of 1000 direct.
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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.