graham
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I think it would depend on how much information you're actually given about the reinsurers but here are my thoughts: * Generally, actuaries rely on net reserves to assess the financial strength of an insurance company because they represent the…
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Got it, thx!
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It was a while ago I did this but I think the reason I didn't divide that one between NAIC.IRIS and Odomirok.RBC is that the IRIS reading comes first in the Ranking Table, so if I had put the IRIS ratio question subpart with the IRIS reading, people…
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Great! I am going to post a step-by-step solution to this. (There is 1 small change I need to make to what I wrote above however. I believe the TBI of $8,800 is correct but I should have subtracted the policyholder dividends from the Net Pre-tax …
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Yes, the graders are aware of those tricks that candidates use if they are not 100% sure of the answer. If they ask for 4 items, they grade only the first 4. According to what the examiners' reports have stated, they would ignore any answers past th…
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I believe your answer of 8,800 for TBI (Tax-Based Income) is correct. We will double-check this however and make a final determination. Following the examiners' report and making the required adjustments: First note that the given information …
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In actuarial practice, especially when it comes to Statements of Actuarial Opinion (SAO), transparency is important. Generally, if the Appointed Actuary (AA) is opining on all of the company's reserves, it's often assumed to be the case unless state…
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Retroactive reinsurance contracts don't directly reduce the net loss & LAE (Loss Adjustment Expenses) reserves on Schedule P or the balance sheet, as you've pointed out. They are typically accounted for as "contra-liabilities," which offset the …
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There were no material changes. For future reference, you can check the "Syllabus Changes" page in the wiki: * https://battleacts6us.ca/wiki6us/Returning_Users_6U The link is in the sidebar of any page in the wiki. (Note that the article is…
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Here are some intended purposes of the SAO: * Regulatory Compliance * Reserve Adequacy * Financial Statement Integrity * Stakeholder Communication * Risk Management * Support for Auditors Typically, the primary intended users of an ins…
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The COPLFR text does use the term "inadequate" rather than the phrase "are less than the minimum" but I think it's the meaning rather than the exact wording that's important. Although, I can't say for sure whether the graders would have given you…
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You're right that a literal reading of the Germani text doesn't explicitly say that RMA is the arm of the federal government that provides premium subsidies, but it's easy to verify that online. You're also right that this produces a contradictio…
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The link provided on the CAS website seems to contain more than what is specifically listed in the syllabus. The syllabus lists this: * “A Public Policy Practice Note, Statements of Actuarial Opinion on Property & Casualty Loss Reserves, 20…
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Corrected, thx!
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As far as I can tell, it is included in 2018-Fall-Q21. (When you write D&C, do you mean Defense and Cost Containment?)
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I believe the primary insurers would show the reinsurance companies involved on Schedule F, but the banks would probably not appear anywhere except on the letters of credit since they were the ones who issued them, as far as I understand. (The am…
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Note that if this is not discussed in the syllabus readings then you would not be responsible for it on the exam.
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Grazie! Molto cantabile! (You must be logged into BattleActs 6U for the link to work.) * https://battleacts6us.ca/wiki6us/Odomirok.22-23-GAAP#SAP_vs_GAAP
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As far as I can tell, the source text doesn't explicitly state that opining on both net and gross reserve estimates is a requirement. But if the goal of the AA report is a comprehensive understanding of the company's position, then yes, considering …
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Got it, thx! * https://battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=AAA&suffix=RetainedRisk&…
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The life expectancy would affect the liability amount which would in turn affect the pricing of the commutation. And court decisions could change the amount of the compensation, usually by either putting a cap on the compensation, or raising the cap…
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I'm not sure how I came up with that. You're right that the answer is not explicitly in the source text. I think it's probably a reasonable question though. The concept of commutation is discussed in the source text and the answer contains things…
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I don't think this question gives you enough information to use the Bright Line Indicator Test. You would need TAC (Total Adjusted Capital) and CAL (regulatory capital level corresponding to Company Action Level). In general, if an exam question …
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Yeah, I just changed the background to orange. Thanks!
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The short answer to your question is that the numbers I selected for this example were not internally consistent. (Sorry, my bad!) Here are some explanatory details: * You are correct that if you calculate C.66 (or Column 66), Total Collateral …
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We're looking into this...
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I don't think the Bright Line Indicator test would be valid here because it only applies when the appointed actuary does not address material adverse deviation. Here, the exam question specifically asks how the appointed actuary would address materi…
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Sorry, that should have been listed as a positive. Thanks.
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These questions should have been marked as outdated. I have amended this. Thanks.
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@GrantMercy @Staff - AC I see where you mean. I fixed the link. Thx! * https://battleacts6us.ca/wiki6us/NAIC.SSAP-62R#Study_Tips