Difference between revisions of "SAO Practice"
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# 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. | # 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. | ||
# 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. | # 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. | ||
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+ | * [[SAO Practice Answers 2018-Spring]] |
Latest revision as of 22:51, 15 February 2024
Contents
Questions Similar to 2019-Fall
- Describe the impact of under-reserving on a company's financial statements.
- How does reinsurance affect a company's risk profile?
- Explain the significance of using discounted versus nominal values in reserve calculations.
- Discuss the implications of changes in actuarial assumptions on reserve estimates.
- What are the potential consequences of a material error in the actuarial report for a company?
Questions Similar to 2019-Spring
- Explain the importance of the appointed actuary's range in determining the adequacy of loss reserves.
- How does the concept of material adverse deviation (MAD) influence the actuary's opinion in the Statement of Actuarial Opinion (SAO)?
- Describe the role of reinsurance in the actuarial evaluation of a company's reserves.
- What factors should be considered when assessing the adequacy of reserves for a new line of business?
- Explain the significance of one-year development to prior year surplus in reserve analysis.
Questions Similar to 2018-Fall
Questions Similar to 2018-Spring
- 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.
- 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.
- 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.