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Sorry, my bad. What you originally said is correct.
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Yes, the equation in the examiner's report is merely a short-hand for net income, as these two pieces make up the lion's share of it, and are the pieces that are relevant to the question.
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Correct.
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It would contribute 0 to both num and denom, because as of 12/31/2018, it is recovered, no longer recoverable.
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Correct.
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I think this could have been an acceptable answer.
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The three parts of income are quite distinct from each other. I would need to know what scenario of misplacing an item you are considering to be able to comment.
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Sure, good luck.
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The federal law that superseded state law was the Interstate Commerce Clause of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. The insurance contract here adheres to such interstate commerce. This law does…
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FHCF pays 90% of the losses between the retention and the limit.
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The 90th percentile is at 20000: chance of loss being <=20000 is 90%. Sample 1 answer is a "lazy" demonstration. In the table, you see that prob of 20000 loss is 10%. 20000 is more than a 10% loss. So, he demonstrates by pointing out these fac…
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Sure, good luck.
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If you are referring to the taking out of capital gains tax, that is necessary to net capital gains of tax. Taking out of TLF from NII is needed to net NII of its own tax. They are separate taxes.
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There have not been past exam questions on full calculation of R0. The wiki gives some examples of the calculation of elements of R0, under the R0 topic.
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I don't know to which sample problem you refer. Bonds and stocks are pooled and sorted by value. Top 10 are subject to ACC. From within the top 10, the bonds will go into the R1 ACC and stocks into the R2 ACC.
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Yes, correct.
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No, it is not related to forbearance. It is a reason, other than forbearance, for the regulator to end up responding slowly.
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m(S-H), as the terminology indicates, is the mean surplus for Home. It feeds into TIA(H) as such. That, in turn, is multiplied by the inv gain ratio to yield Home inv gain for the current year.
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IEE.IG1 does not calculate TIA for a specific LOB. The surplus component that goes into TIA.home in IEE.IG2 is the mean surplus.
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danwang0509, you use mean surplus when allocating surplus to a specific LOB.
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This needs a review of NAIC.SSAP-9, the "subsequent events" topic. There is a link to a forum thread there that answers this question.
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It is highly unlikely that special surplus will be examined in depth. I recommend not spending too much of your time on this. "Special surplus" refers to a specific component of an insurance company's surplus that is restricted or earmarked for s…
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IEE is there to state profit by line and allocate surplus (capital) to lines. Investment gain is a part of profit. Profit-to-surplus ratio gives the return on investment of each line. This can be used to gauge efficiency in operations and capital al…
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In this context, we don't refer to liabilities as "liquid." It's a comparison of liquid assets to liabilities. Liabilities include unearned premium reserve, which includes deferred agents' balances. But DAB is not part of the liquid assets in the…
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Correct. This was corrected in the DT_RAPID table, but a note regarding the exam answer was not added.
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Sure, good luck.
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Sure, good luck.
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Annuity takes the place of a reinsurance contract. The reserve is what is owed the claimant. The annuity negates that reserve. As the annuity is paid out, the reserve and annuity values are drawn down.
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The Florida Hurricane Catastrophe Fund assessments are charges that may be levied on insurance policyholders in Florida when the FHCF lacks sufficient funds to cover its liabilities after a major hurricane. The FHCF is a state-run reinsurance progra…
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They may do it, if they do not want to use reinsurance accounting for some reason.