graham
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Normally, the financial statement data is through 12/31. The actuary might consider relevant information that becomes available subsequent to that however. According to the source text, acceptable language for that section can indeed just say "date …
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There are differences in the level of certainty, and the nature of the assets that lead to the different treatment of agents' balances and reinsurance recoverables in the TIA calculation: * Timing and collection risk: Agents' balances can be su…
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That was changed in the 2021 update to the Odomirok text. The explanation in the 2016 exam problem is now outdated. I will include a footnote in the BattleTable about this.
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Oh, ok. I'll edit that to make it clearer. Thx.
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I see your point although hopefully the actual reserves and the actuary's point-estimate are close so it wouldn't make a material difference. If they are not close, then the actuary presumably thinks the company's reserves are not accurate and may f…
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That's just the rule. If the AA did not calculate a range, then the AOS doesn't require a range. But if the AA did calculate a range, then it must be included (along with the point estimate.)
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I think your answer would be given credit. The first answer I provided, * agents are wary of unrated insurers, maybe should have been more precise. I really meant: * agents are wary of insurers that are unrated by a rating agency …
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The state of domicile for an insurance company refers to the state where it was incorporated and where its headquarters are located. The regulator’s state of domicile refers to the state where the insurance company is licensed to operate. The regula…
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There is now! See 3rd category on the list on the left side of the screen.
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The examiners' reports often don't provide comprehensive answers so don't worry too much about that.
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It's fine to provide an opinion for the net reserves separately from the gross reserves. (I'm not really sure what an "general overall opinion" would be based on.)
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Odomirok states net and gross:
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No, the range is not provided in the SAO. The SAO is available to the public but the AOS is not, partly because the AOS provides more detailed information about the actuary's work that the company may not want to be made public.
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I'm not 100% sure. I think the question assumed the actuary was opining on net reserves so in that case it would definitely have to be included. If they were opining only on gross reserves (and only had information on gross reserves) then the net bo…
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If there's no mention of unearned premium reserves for long duration contracts in the question, then you can ignore it. The language in the opinion pertains to items for which the actuary is actually expressing an opinion. If there were no unearned …
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I'm not sure I understand what you're asking. The question specifically states that the AA has calculated both. The answer is then that the AA must also include include both when they complete the AOS. It's the AA who calculates the range and/or …
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I changed the description of IRIS 5 in that web-based problem to be consistent with the term the IRIS source text uses. Thx.
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No, the SAO is a high-level summary that accompanies the more detailed actuarial report. So details of the reconciliation would not appear in the SAO.
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The short answer is that you can generally use surplus as an approximation to TAC. In this problem you aren't given any other information so that's all you can do. A longer answer is that surplus approximates TAC for some companies better than ot…
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Here is the link to the revised answer: * https://battleacts6us.ca/wiki6us/Klann.ReinsComm#Klann_Pop_Quiz
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You are correct that Schedule P and the Five-Year Historical Loss Development Exhibit are more directly related to assessing reserve adequacy than Schedule F. Schedule P provides detailed information on loss reserves, including one-year and two-year…
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Yes, my mistake. The line item "dividends to policyholders" is listed in the "Other Income" section which is why I said it should be subtracted from Other Income: The text however does mention that there are 3 sources of income before federa…
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Note that a significant portion of the details on tax calculations was in the old Feldblum reading which has been removed from the syllabus and may have shed more light on this problem than Chapter 26 from the current Odomirok text. But in any ca…
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The "4 ways" as given in the wiki was from a previous version of the Horn reading. In the most recent version, there are only 3 reasons. I missed that change. The wiki and BattleCard in quiz 3 have been updated here: * https://battleacts6us.ca/…
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This is not discussed in the text so you wouldn't have to know it for the exam, but here is what I know: The cost of obtaining a Statement of Actuarial Opinion (SAO) for U.S. insurers can vary depending on several factors. While there is no stand…
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Actually, that's a good idea to keep a change log, although most of the changes are quite minor so if for some reason you didn't see a change, it probably wouldn't make a material difference.
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Got it. Thx.
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I inserted a note in the wiki to clarify. Thx!
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This problem was not presented very well. They don't provide enough information for you to know how to deal with the non-admitted assets. See the excerpt below from the examiners' report: Part (b) actually asked for total assets but to calcul…
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I will double-check this. Thanks.