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We seem to have used the term "insurer" loosely in this case, as in a reinsurer is also an insurer. You are correct that the ratings are those of reinsurers.
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See my answer to the same question here: https://battleacts6us.ca/vanillaforum6us/discussion/224/spring-2016-15#latest Let me know if it is not satisfactory to you.
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Yes. Schedule F Part 3 columns 38 to 41 divide up overdue on paid into mutually exclusive buckets. The table in the question was sloppy and did not adhere to the Sch F convention for these. So, they must have allowed for different interpretations in…
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Income Statement line 31 is "capital changes," and line 32 is "surplus adjustments," both paid-in and transferred. IRIS 8 text names adjustments for capital and surplus, paid-in or transferred. The use of "change" in line 31 simply refers to a…
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You should review the SSAP 9 - Subsequent Events topic in relation to this. I see that the examiner considered this a Type I event, which is recognized in the financial statement before it is issued, unless it is immaterial. The clincher was that…
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Sure, good luck.
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"Residual markets" are generally state-led organizations that high-risk insureds get assigned to involuntarily, and their costs are shared among voluntary market insurers. Surplus insurers are private sector entities that voluntarily underwrite high…
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An involuntary insurance program (state guaranty fund, in this case) collects contributions from voluntary market insurers to cover its losses. These contributions are called "assessment." It usually refers to assessing the insurer's voluntary marke…
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"Exclusive dealings" is in regard to insureds. Insurer forces its "customers" to buy only from the insurer. "Boycotting" is in regard to insurance agents. Insurer forces agents to do business only with the insurer. Boycotting is generally done…
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Stress testing is mentioned in the Dodd-Frank Act, but actual calculations are not covered. What makes you think that they are?
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Thanks, we will tend to it.
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2018.Fall.18 is a majority RBC question, that's why the IRIS part got tagged along.
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Are you referring to 2014.Fall#15? There, Net UEP is included in liabilities in the solution. UEP is no an asset item.
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In the wiki, we have for R1: Other long term assets (includes mortgage loans, low income housing tax credits, working capital finance investments), and for R2: Schedule BA assets. Odomirok's description of Schedule BA assets on page 98 i…
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In this situation, in the examiner's comments, you will often find that they say they considered the first four items given for credit. So, there is no benefit in putting all five items down.
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I don't find mention of "universal target capital level" in Odomirok.RBC or NAIC.Solvency, either. This may have been a hypothetical thrown out by the examiner that was expected to be answered with general knowledge about RBC provided in these texts.
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When one state investigates an insurer, other states are peer-pressured to investigate that insurer as well, if it operates in their state. Multiple eyes on the same insurer helps with checks and balances.
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The formula is correct. Here is the extract from Odomirok, page 272: The RBC charge for reinsurance recoverable is split 50%/50% between R3 and R4 in circumstances where the reserve RBC charge (see discussion below) exceeds the sum of the credit…
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NRRA is part of DFA. https://battleacts6us.ca/wiki6us/NAIC.Solvency#paragraph_5-57:_NRRA:~:text=NRRA%20is%20the%20Nonadmitted%20%26%20Reinsurance%20Reform%20Act%20of%202010%20and%20came%20up%20in%20part%20(c)%20of%20the%20problem%20below.%20It%20…
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There is no mention of an uncollectability risk on this claim. On the other hand, the claim is subject to intercompany pooling, which is explained in one of the Notes.
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Federal regulation applying exclusively to insurance does apply to insurance companies. https://battleacts6us.ca/wiki6us/Porter.2-Devlpt#1945:_McCarran-Ferguson_Act:~:text=but%20federal%20laws%20applying%20exclusively%20to%20insurance%20supersede…
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It is the "dividend income" that is no longer covered. "Policyholder dividends" still need to be netted from final income.
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For a discussion of the ambiguity in he text regarding whether SAP discounts reserves, see the following: https://battleacts6us.ca/vanillaforum6us/discussion/605/statutory-loss-reserves-are-booked-at-their-nominal-undiscounted-value#latest Los…
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They are from the statutory rule. 30% of direct and 15% of assumed loss-sensitive premium is taken out of the base charge, i.e. base charge is "discounted." Loss sensitive policies have the ability to adjust premium due to losses, but direct policie…
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Yes, correct.
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Yes, correct.
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It means part of the premium charged by the insurer is paid by the federal government.
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AIP assigns these risk to insurers according to certain quotas related to their voluntary market share. The number of risks rejected by and assigned to an insurer will not be the same. But yes, that's essentially the idea, insurers are forced to tak…
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URR is a line item in GAAP reporting, whereas provision for reinsurance is one for SAP reporting. URR includes dispute risk as well as credit risk, whereas PR does not. Insurers that file both types of statements need them both.
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Sure, good luck.