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In Schedule P, amounts are stated net of S&S. S&S columns are "memo items": all other columns have been netted of S&S, and these columns just tell you how much that S&S was.
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No, you've got it, this is sufficient. I would just say that it is not for adverse development in R4, but rather for the risk of what the reporting entity considered ceded coming back to them.
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The reduction may have to do with the life insurance subsidiary also accounting for operational risk. That excerpt is the extent to which Odomirok discusses this reduction. It is mentioned in passing, rather than getting into how it is actually d…
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No, this attribution is not made. Surplus aid is defined as aid that is yet to come from future premium earnings. Its base is the yearend UEPR, what is yet to be earned. The exposure years feeding into it are not relevant.
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1) We'll take note of this. Thanks. 2) The clincher is that ARP assigns particular high-risk insureds to particular companies, whereas RF shares the results among market participants. The ARP business of a company is likely to perform badly, even…
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This works.
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This statement you quote from examiner's comment is confusing. They are referring to answers that added the 800 unpaid claim to the 800 case recoverable. They tried to put in a trick in the listed claims. Since 800 is unpaid, it does not belong i…
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S&S is not one of the items subtracted to get 11 and 24. S&S is already excluded from the columns making up 11 and 24. So, the S&S columns are like "memo items."
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The answers are some common sense observations, rather than being related to codified thresholds. "Cash is only 1.6% of admitted assets" This is low level of cash. "42.9% of the uncollected premiums is not admitted" Too high. "The com…
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Answered in the other thread.
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The NAIC Annual Statement is based on SAP, entirely. An insurer statement that's based on GAAP is SEC 10-K. "Schedules" are particular to NAIC AS: you won't find them in 10K or other GAAP-based statements.
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Correct. "Direct" is the commission paid to agents for direct business. "Assumed" is reins commission you pay for acquiring business of another insurer.
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PE1.13 solution is now revised.
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The adjustment is taking out surplus aid from surplus. NAIC wants to see results with surplus aid excluded from surplus, when surplus aid is significant. In all cases (including IRIS 2), surplus is the denominator. Multiplying surplus by (1-.1…
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Part 2 incurred includes IBNR. It is ultimate losses. The change from one point to the next depicts change in reserve. If the change from one point to the next is zero, that means total reserve (case+IBNR) was taken down exactly by the amount pai…
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The issues you bring up with PE1.13 solution are valid. We will address them and get back to you.
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Sorry, looks like I messed up my formulas. Here it is again: EP = WP - change in UEP That equivalence is simply algebraic: EP + .2 chgUEP = (WP - chgUEP) + .2 chgUEP = WP - .8 chgUEP
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2015.S.25a does not net out reins premium. It takes the reinsured portion of loss and compares it to reins premium. As it should. 10-10 is a rule for risk transfer to reinsurer.
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You need to keep track of the discounts. Schedule P displays with and without discount. Balance sheet is only one way. Discounting is a convoluted issue. Here is a thread where we get a little into it: https://battleacts6us.ca/vanillaforum6us/…
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"Trick 2" appears to be wrong. We will look into it and get back to you.
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Past questions, including that question, accepted answers both including and excluding DTA in CUCG. I see that in the Odomirok section on CUCG, there is no mention of DTA of CUCG. I doubt that questions going forward will give place to this.
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The comparison is made between JUA and Assigned Risk Plan, not RF. With JUA/RF, the resulting profit/loss of the total pool is shared. With ARP, subgroups of residual risk are assigned to different carriers. The results of the subgroups will be v…
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Yes. In other words, if the reporting company uses RBM for URR, they will have to separately make a provision for disputes. But if they use EBM, provision for disputes is built into that.
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In your second calc, you should have 8490 - (1610-1450), which is 8490 - 160. WP = EP - change in UEP That equivalence is simply algebraic: EP + .2 chgUEP = (WP - chgUEP) + .2 chgUEP = WP = .8 chgUEP
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To clarify, there are three source of income: "underwriting," investment" and "other." DTP is subtracted out of the total of these three, not only from "other."
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This question simply tested the reins provision formula. There were not any tricks about collateral. It is conceivable that they ask questions where they test what should be included in collateral. There, you would have to know which items are in…
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The fact that contract 1 adheres to the "reasonably self-evident" criterion hinges on the fairly high levels of quota-share and LR cap. It is not related to the commission. The given commission structure for contract 1 does not make sense. But, i…
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1) "Profit/loss" means positive or negative income. 10K is premium, not profit. 2) The 10's in the 10-10 rule are lower bounds. Here, you have a 10% prob of a 100% loss. 3) 95% is profit, not loss. There is a 10% prob of 95% profit. At higher …
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This is a typo. It should read 22.07%. By the givens, the 12,250 is indeed positive, so reserves were deficient. This is outside the usual range of 20%-or-less.
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Sure, good luck.