Staff - AC
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This explanation in the wiki should be sufficient: Cook doesn't really explain how RF rates are set but RFs are essentially intended to be non-profit enterprises to fulfill the social good of universal availability of auto insurance (and rules ca…
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Homeowners is a personal line. The insureds are individuals, rather than commercial enterprises. They are a little more prone to be uninformed about the insurer's finances than the commercials. So, the regulator perceives Company A to be more in nee…
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Sure, good luck.
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Deferred agents' balances are premium owed to the company, but not yet remitted by its agents. The company (arguably) will not be liable for loss and expense arising from this premium, at yearend. The premium is probably larger than the loss and exp…
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It's a typo. We do not add the EP, and their 106 profit figure does not include EP that way, even though the formula next to it includes it. They also put down div to sh as 105, whereas it should be -105, and their resulting -108 uses it that way.
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1) Net Income includes Inv Gain, which is Inv Income and NRCG. Also, the two Inv Gain items in the IEE, given, make up Inv Gain. You should use those two, because you are not given Inv Income. 2) No, it is the sh div paid in the year that is the …
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FHCF makes payments specifically to those insurers that had cat losses. Assessments are taken from all the insurers in the state. You have a point. FHCF's debt is ultimately public debt.
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19K and 20K come from Schedule P's "direct and assumed" columns. In the SAP balance sheet, loss and LAE are stated net (of reins recoverables). 7500 recoverable is given (not 3500+4000). You need to subtract this 7500 to get to the net.
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No, there isn't. It's in the hard-copy study kit. However, each IRIS ratio in the wiki is linked to a pdf of the relevant section of the source material. These linked pdfs will be updated, should there be a change to the source material in the new y…
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Aside from the RI recoverable charge, R4 is exclusively on unpaid loss and ALAE. Please point out the battle cards where you see an indication to the contrary, and we'll get them fixed.
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The solution is referring to "unrealized capital gains" as DTA. Odomirok 8 and 9 (2020) does not mention DTA, nor a tax on unrealized gains. I think it's safe to assume that this reference is outdated. The answer would not include a tax on unrealize…
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There is an adjustment to R5 related to loss-sensitive policies. No LSP means that adjustment is not applied. Excessive growth factor is used in the related charge. I can't think of a reason for needing the 50 loss info, so that may have been …
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What the note explains is that the figures selected for the problem were not screened to avoid a negative RBC output, although the intention was not to effect such an output. The note is further making a supposition that you should use zero, should …
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What they mean is, in the calendar years where the company over-reserved, it stated a lower income. (Premium - paid loss - change in reserve - expenses = income.) So, it paid a lower income tax. And that is a regulatory concern. This is not a sat…
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Short-tail lines have less reserving risk. There is less development, so the reported loss is closer to the ultimate loss. Cats imply large amounts of loss due to a single event. A line that is not exposed to cats has less high-severity event risk. …
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Surplus can be augmented in two ways. One, earn income on operations. Two, pay money into company's accounts. "gross paid-in and contributed surplus" is the second of the two. "Surplus notes" is a way of paying into the company.
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The wiki tries to put column relationships in formulas. It devises various acronyms representing the columns to put in these formulas. The correspondence between acronym and column number is generally noted. You generally need to commit to memory…
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Foreign means domiciled in another US state and alien means domiciled in another country. Either of them can have any of the three legal statuses of reinsurers. This extract was about these legal statuses. It was not accurate and it is now revise…
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Exam questions will generally name the various sections/columns of Shedule F used in the problem, rather than expecting you to remember them. The wiki is up to date with the parts that matter. You will be expected to be familiar with the contents of…
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You are correct. This is a typo in the solution.
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This description in the SSAP 62R section is not complete, but the elements given are correct. I will get back to you about 2017.F.28a.
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Yes, this is correct. Sorry, my bad.
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Please identify the question, the part a of which you ask about. The wiki explains the treatment of retro reins as you describe it (in Odomirok.22-23-GAAP): Retroactive reinsurance under SAP: undiscounted ceded reinsurance reserves are record…
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This is again a badly written question. Part b's reasons for change negate part a's assertion that reserves are inadequate. If none of the items of part b were in play, then you might conclude from those triangles that reserves are inadequate. Th…
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Your first answer is not necessarily an "advantage" of one over the other. Your second answer is arguable. This was a throwaway question by the examiners. . . There are no advantages of one over the other.
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Your link is not coming up. 2018F.16 does not have these figures. 2017F is not summarized, so I don't know which article to find 2017F.16 in.
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Double-take.
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Technically, this should be an acceptable answer. Financial ratings of re's are discussed in the context of their reliability as a debt instrument for primaries. That's why your answer was not featured.
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I don't know how you differentiate an "actuarial indication" from PO and AJ. "Actuarial judgment" describes something vague, in my opinion. By contrast, price optimization has hard methods associated with it. These two are not comparable in a sci…
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Sure, good luck.