graham
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P.S. Yes, Odomirok would be the definitive source for what you need to know for the exam, and if you can't find it there, it shouldn't be on the exam. Also, it's unlikely you'd be asked to specifically define a term. Typically on exam problems, you …
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Yup, thx! * https://battleacts6us.ca/wiki6us/Vaughan.Crisis#Effectiveness_of_Regulation
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I'm 99.99% sure they would not ask you for those details (basic education, experience, U.S. specific knowledge, subject area knowledge, etc.) The reasons I think that are: * It's pure memorization that goes well beyond the degree of memorizatio…
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There is no single correct answer for selecting the materiality standard. In general, you can select anything you want provided it can be justified. It should be fine to use carried reserves in selecting the MS.
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The actuary's responsibility generally includes determining the reasonableness of the unpaid claim estimates for both gross and net amounts. This requirement however, to consider both net and gross reserves, can vary depending on regulatory standard…
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"Nature of coverage" refers to the specific terms, conditions, and scope of protection that an insurance policy provides to the policyholder. This can include the types of risk that are covered, the financial limits of the coverage, the duration of …
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Well, that is a very important point. In general, net versus gross could refer to: * reinsurance * salvage & subrogation * catastrophes But here it refers to reinsurance. The text doesn't always make that clear (and I suppose I didn't…
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You're welcome!
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In general, yes, you are correct. A broker's license determines where they are allowed to operate and conduct business, typically in the jurisdiction in which they are physically located and where they've obtained their license. Non-admitted insu…
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I understand your confusion. The process of independently procuring insurance, especially in the context of surplus lines and non-admitted carriers, can indeed be complex. In the case of independently procured/direct placement insurance, the insu…
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There is some overlap between Schedule P and Schedule F but Schedule F doesn't always provide the same level of granularity in terms of loss and loss adjustment expense reserves as Schedule P does. Schedule F is primarily to assess credit risk fo…
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I'm sorry, I don't think I understand your question. You're saying the solution to part (a) "allocated negative goodwill to income directly?" I don't see that anywhere in the solution. (Part (a) was just asking you to list the components required…
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The text is not clear on this but the examiners' report accepted the answer that loss reserves under GAAP are commonly discounted. That answer should be acceptable even if it is outdated and/or wrong. You should be graded only on what is in the syll…
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This isn't enough information to give a definitive answer. It depends on the specifics of the sliding scale commission. If the commission were not on a sliding scale and set at something like 10% of premium then there would be risk transfer becau…
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This reading is updated every year and most years there are no changes. I'm not sure why the CAS listed it as new but I won't know for sure until I receive the study kit. (The IRIS reading is not available digitally.)
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The 150 is incurred expenses and the 136 is paid expenses.
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You can't calculate it like that because Schedule P Part 2 shows ultimate losses only. You would need to subtract paid losses to get to the reserves. (Note that Part 2 is labelled as "incurred losses" but it's actually "ultimate losses")
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In that problem, you're given information on UEPR for long duration contracts so it would have to be included. (In other words, excluding it is not an option.)
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Yes, that was an oversight. Thx! * https://battleacts6us.ca/wiki6us/Supplementary_Information_on_Qualifications_for_Appointed_Actuary
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Fixed it, thx!
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Your question may be answered by this thread: * https://battleacts6us.ca/vanillaforum6us/discussion/79/spring-2015-25-c There is a footnote in the BattleTable for that reading that mentions part (c) is a defective question: * https://b…
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Real estate is usually recognized as an asset on financial statements unless there are special circumstances that prevent it from meeting the criteria for recognition as an asset. To be recognized as an asset, the real estate must provide economi…
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I think you might be able to successfully argue for no opinion. My thinking when I created the question is that the company's booked reserves were lower than the actuary's estimates and the actuary's estimates didn't even include Unearned Premium Re…
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No, you wouldn't need to give such a long answer for 0.75 points. You generally have to provide one "thing" for each 0.25 points a question is worth. The solution I provided was just to give a comprehensive solution to that type of problem. For a sp…
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Yes, it was mislabeled. Thx.
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Yes, the previous year's surplus aid should also be removed if it's available. In this problem you could not calculate it so you could not remove it. Here's the excerpt from the IRIS text: It might be a good idea to mention in your answer tha…
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The text refers to this twice: [1] Overview * The formula is not a comprehensive measure of every risk for an insurance company; rather it only considers those risks that are material to an insurance company. Further, risks associated with a…
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After looking at this again, I believe @katieoc27 is correct and the examiners' report solution for part (b) of 2018-Fall is wrong: * https://battleacts6us.ca/pdf/Exam_(2018_2-Fall)/(2018_2-Fall)_(23).pdf The excerpt from the COPLFR source …
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Actually, I got that bullet point from part (b) of that 2017 exam problem. You're right that the restatement of the balance sheet always shows no change to surplus. That's because the balancing item in line 6 (see exam problem) is calculated specifi…