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UEP Line 9 should also be net of what is ceded. In this case, it would be zero. Surplus Aid is 30 regardless, by way of increasing income by that much.
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Q10 of 2014S is not an RBC question. If you mean Q20, that question is marked as "outdated" in Exam Summaries.
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This question is outdated. See the wiki note here: https://battleacts6us.ca/wiki6us/Odomirok.26-Taxes#:~:text=2%20Part%20(a)%20of%20this%20problem%20is%20outdated%20because%20under%20the%20TCJA%20(Tax%20Cut%20and%20Jobs%20Act%20of%202017)%20it%27…
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We do not know. We reason that it is too much detail to be expected to be committed to memory, and that 2016 was a one-off. See the wiki note here: https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Week_2:Day_3.28R3_with_intro_to_R4.29:~:text=Now%…
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"Calculating the RBC Charge" does not pull it up. Could you indicate precisely to which practice calc you refer?
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"Underwriting loss" does mean max(0, loss less premium). The 10-10 rule is interested in this amount.
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This is the answer key, in this case, going off-script from the paper. It combines the paper's statements with some related information from other exams. Crucially, they are given as sample answers. Graders may also have accepted answers as liste…
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Through the history until 2019, examiner's reports occasionally have wrong answers. We cannot tell whether papers were graded based on these wrong answers, or the wrong answer appeared as an error in the examiner's report alone.
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Sure, good luck.
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The question asks for income. Income formula includes UW expenses. From the set up, it is reasonable to assume "other expenses" means uw expenses.
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These are not all of the sections. But, they are the ones for which you will be responsible.
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"2 Yr Investment Income Ratio" uses investment income, not investment gain. NRCG does not enter into it.
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Each Annual Statement section is reviewed separately in the syllabus and the wiki. As you get familiar with each of them, you will get better at answering that type of question.
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I don't understand your question. You can pull up an AS and see what exhibits there are in there.
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Direct&Assumed = Total D&A * pool %. Sch P does not give Direct alone. There may well be ceded that is pooled. It is the external cession, rather than cession to pool companies.
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Technically yes. Premium is conceptually up-front, compared to losses that are lagged in payment. That's why the formula doesn't bother with "NPV" for premium.
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Yes, these are correct.
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In this formula, losses are assumed to be paid out in time, while premium is assumed to be received immediately. Some exam questions may have put a spin on when exactly the reins premium is received that calls for it to be discounted.
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The formula is correct and it yields the stated answer. Reinsurer is commuting the reserve to the primary. So, it doesn't have it on its books anymore, so its income increases. But it paid the primary a price to do this, and that price reduces it…
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For calculation questions, it is safe to assume that you will be penalized considerably for not giving the correct numerical answer. Writing out the correct formulas may (or may not) reduce this penalty, while it will cost you time. For full credit,…
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The columns in Schedule P are "Loss and Loss Expense Percentage." They include A&O loss expense.
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That's correct. Good luck.
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Private insurers underwrite crop risk. The cheat sheet meant that fed govnt reinsures crop through RMA. RMA is an agency of the fed govnt.
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It is listed in Baribeau.Regs, because part c is related to this section.
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RMA helps farmers prevent losses by helping monitor and control risks. RMA does not underwrite policies.
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The examiner's answer is outdated. Here is the relevant passage from Odomirok since 2021: ". . .The RBC charge for reinsurance recoverable is split 50%/50% between R3 and R4 in circumstances where the reserve RBC charge (see discussion below) ex…
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It is listed in Porter.3-Roles-Fed, because part a is related to this section.
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The note says the unauthorized reinsurance provision is capped by T. This is still correct.
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Ok. It seems the examiner tried to fashion a tiered response, based on the answers they received. I don't find their four examples to be representative of buyer sophistication. Despite what they say about the tiers, I think they would accept an a…
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The examiner answer does use the "half". I read this: Total R4 charge = $75,000 + ($4,300 / 2) = $77,150