SAO Practice

Questions Similar to 2019-Fall

1. Describe the impact of under-reserving on a company's financial statements.
2. How does reinsurance affect a company's risk profile?
3. Explain the significance of using discounted versus nominal values in reserve calculations.
4. Discuss the implications of changes in actuarial assumptions on reserve estimates.
5. What are the potential consequences of a material error in the actuarial report for a company?

• SAO Practice Answers 2019-Fall

Questions Similar to 2019-Spring

1. Explain the importance of the appointed actuary's range in determining the adequacy of loss reserves.
2. How does the concept of material adverse deviation (MAD) influence the actuary's opinion in the Statement of Actuarial Opinion (SAO)?
3. Describe the role of reinsurance in the actuarial evaluation of a company's reserves.
4. What factors should be considered when assessing the adequacy of reserves for a new line of business?
5. Explain the significance of one-year development to prior year surplus in reserve analysis.

• SAO Practice Answers 2019-Spring

Questions Similar to 2018-Spring

1. Evaluate the completeness and compliance of the Actuarial Opinion Summary (AOS) in accordance with the National Association of Insurance Commissioners (NAIC) guidelines. Discuss the importance of including a detailed analysis of reserves, including both gross and net figures, and the implications of any discrepancies between these figures and the company's carried reserves.
2. Explain how the materiality standard is established for evaluating the risk of material adverse deviation in an insurance company's reserves. Illustrate with an example how asbestos exposure could be considered a key risk factor in this analysis.
3. Discuss the types of opinions an actuary might issue when data is insufficient for a portion of the reserves. Include how the materiality of the data affects the type of opinion and provide examples.

• SAO Practice Answers 2018-Spring