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{"sheet":"TOC","index":0,"n_rows":64,"n_cols":24,"rows_kept":64,"cut":false,"hidden":false,"merged":[]}
[]
[null,"#",{"$f":"\"total pts: \" & SUM(C3:C64)","v":"total pts: 70"},"a","b","c","d","e",null,"NOTES"]
["Baer.Intro",1,2,1,0.5,0.5,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["KPMG.RegOv",2,1,0.25,0.5,0.25,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["AAA.CrdSc",3,1.75,0.75,0.5,0.5,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["Marshall.Benefits",4,2,0.5,0.5,1,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["Land.Cases",5,2.25,0.75,0.75,0.75,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["Harris.Tort",6,1.75,0.25,0.75,0.25,0.5,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["Chev.Agric",7,2.5,0.75,0.5,0.5,0.75,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["FA.Dutil",8,3.25,0.75,0.5,1,1,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["Morn.Pension",9,1.5,0.5,0.75,0.25,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["ICBC.Affordable",10,1,0.5,0.5,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["IBC.Flood",11,3.75,0.75,0.5,1,1.5,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["CIA.Accting",12,2.25,0.75,1,0.5,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["OSFI.MCT",13,7,2,4.5,0.5,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["CCIR.ARinstr",14,1.25,1.25,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["MSA.Ratios",15,2.75,0.75,1,1,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["CCIR.ARinstr",16,2.25,2.25,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["OSFI.Eqk",17,2.25,1,0.5,0.75,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["Reinsurance",18,3,0.75,0.75,0.75,0.75,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["CIA.DCAT",19,3.5,1,0.5,1,1,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["CIA.MfAD",20,3.5,1.5,0.75,1.25,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["BCAR.Cdn",21,1.75,0.75,0.5,0.5,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["CIA.Disclosure, CIA.Runoff, CIA.DIscnt",22,2,0.75,0.5,0.75,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["Feld.RtAgs",23,3,0.5,0.5,1.25,0.75,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["OSFI.ORSA",24,2,1.5,0.5,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["CIA.Models",25,4,1.5,0.5,2,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["CIA.Mat",26,2.25,0.5,1,0.75,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["CIA.Subseq",27,1.75,0.25,1.5,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
["OSFI.AA",28,2.75,1,1,0.75,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]
[null,null,null,null,null,null,null,null,"|",null,null,null,null,null,null,null,null,null,null,null,null,null,null,"|"]

{"sheet":"1","index":1,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",1]
["Points:",2,"points"]
[]
[null,"a.","(1 point)"]
[]
[null,null,"Identify 4 examples of federal legislation designed to guarantee the solvency of insurers."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Define the principle of 'indemnity'."]
[]
[null,"c.","(0.5 points)"]
[]
[null,null,"Is a life insurance policy an 'indemnity' policy? Explain."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[]
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[]
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[]
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[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
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[]
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[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"2","index":2,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",2]
["Points:",1,"points"]
[]
[null,"a.","(0.25 points)"]
[]
[null,null,"Describe the 'prior approval' rate regulatory approach."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Describe the 'use & file' rate regulatory approach."]
[]
[null,"c.","(0.25 points)"]
[]
[null,null,"Identify the rate regulatory approach used in Nunavut & Yukon."]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
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[]
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[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
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[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"3","index":3,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",3]
["Points:",1.75,"points"]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"Identify 3 uses of credit scores by insurers."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Provide 1 argument in favour of using credit scores and 1 argument against."]
[]
[null,"c.","(0.5 points)"]
[]
[null,null,"Identify a concern a regulator may have about an insurer's use of credit scores in an"]
[null,null,"economic downturn, and identify a response an actuary might provide that addresses"]
[null,null,"the concern."]
[]
[]
[]
[]
[]
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[]
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[]
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[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
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[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"4","index":4,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",4]
["Points:",2,"points"]
[]
[null,"a.","(0.5 points)"]
[]
[null,null,"Identify the 2 components of auto insurance benefits in Ontario."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"According to the Marshall reading, \"Fair Benefits Fairly Delivered\", the benefits"]
[null,null,"in Ontario auto insurance are not delivered fairly. Briefly describe 1 reason for this."]
[]
[null,"c.","(1 point)"]
[]
[null,null,"Ontario has a 5-point Action Plan to address the unfair delivery of benefits in Ontario."]
[null,null,"Briefly describe 2 points in this plan."]
[]
[]
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[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
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[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"5","index":5,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",5]
["Points:",2.25,"points"]
[]
[null,"In each of the following scenarios, explain a likely outcome for the insurance company and cite"]
[null,"any relevant precendents used to support the conclusion drawn."]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"The insured, a farmer, suffers a lightning strike to his property causing a tree to fall onto"]
[null,null,"a storage shed containing barrels of undiluted pesticides. The barrels are damaged and"]
[null,null,"pesticide spills onto a neighbouring property, although the neighbour's property was not"]
[null,null,"directly damaged by the fire. Assuming the farmer's insurance policy covers fire,"]
[null,null,"lightning, windstorm, etc…, does his insurer have a duty to defend his neighbour's claim of"]
[null,null,"contamination from the pesticides?"]
[]
[null,"b.","(0.75 points)"]
[]
[null,null,"A male limousine driver in Victoria, BC, is accused of sexually abusing a female passenger"]
[null,null,"during a birthday party. The driver mistakenly believed consent had been given and wants"]
[null,null,"the limousine company's insurer to defend him against the passenger's claim of abuse."]
[null,null,"Is the insurer obligated to defend him?"]
[]
[null,"c.","(0.75 points)"]
[]
[null,null,"A banker was accused of fraud in a money-laundering scheme, and wants"]
[null,null,"her professional liability insurer to defend her in court. Is her insurer obligated to "]
[null,null,"defend her?"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
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[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"6","index":6,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",6]
["Points:",1.75,"points"]
[]
[null,"a.","(0.25 points)"]
[]
[null,null,"Define 'joint and several liability'."]
[]
[null,"b.","(0.75 points)"]
[]
[null,null,"Describe a proposed tort reform for joint and several liability"]
[]
[null,"c.","(0.25 points)"]
[]
[null,null,"Define the 'collateral source rule'."]
[]
[null,"d.","(0.5 points)"]
[]
[null,null,"Briefly describe a proposed tort reform for the collateral source rule, and state 1"]
[null,null,"advantage for the reform."]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
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[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"7","index":7,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",7]
["Points:",2.5,"points"]
[]
[null,"An agricultural producer insures the production of corn under a plan with the"]
[null,"following details:"]
[]
[null,null,"area of crop:",null,"40 hectares"]
[null,null,"probable yield:",null,"14,000 kg/ha"]
[null,null,"coverage level:",null,0.75]
[null,null,"insured price:",null,"$0.24/kg"]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"Growing Forward 2 is a comprehensive federal-provincial-territorial framework for Canada's"]
[null,null,"agricultural sector. It consists of 6 Business Risk Management Programmes. Briefly describe"]
[null,null,"3 Business Risk Management Programmes that could protect this producer against crop"]
[null,null,"losses or a drop in the price of the crop."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"If the actual production of corn in a particular year is 350,000 kg, calculate the idemnity"]
[null,null,"paid to the producer."]
[]
[null,"c.","(0.5 points)"]
[]
[null,null,"To calculate probable yield for insurance purposes, we normally use an average of"]
[null,null,"historical yields. Sometimes, however, historical yields need to be adjusted."]
[null,null,"i","What is the general purpose of such a historical adjustment?"]
[null,null,"ii","Identify a specific reason for a historical adjustment."]
[]
[null,"d.","(0.75 points)"]
[]
[null,null,"It is important for agricultural insurance to be self-sustainable."]
[null,null,"i","Define the term 'self-sustainability load'."]
[null,null,"ii","What is the statistical definition of 'self-sustainability'?"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
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[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"8","index":8,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",8]
["Points:",3.25,"points"]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"Briefly describe the origin, role, and goal of Facility Association."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Briefly describe 2 functions of the Facility Association Board of Directors."]
[]
[null,"c.","(1 point)"]
[]
[null,null,"Compare and contrast FARM and RSPs with respect to:"]
[null,null,"i","rates"]
[null,null,"ii","customer knowledge"]
[]
[null,"d.","(1 point)"]
[]
[null,null,"Given the folowing information, calculate the company's loss ratio on their share"]
[null,null,"of the pool. Assume a provincial expense allowance (PEA) of 25%."]
[]
[null,null,null,null,null,null,null,"company","province"]
[null,null,"direct earned exposures not ceded to the RSP",null,null,null,null,1000,20000]
[null,null,"direct earned premium ceded to the RSP",null,null,null,null,48000,600000]
[null,null,"total incurred losses ceded to the RSP",null,null,null,null,"n/a",950000]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"9","index":9,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",9]
["Points:",1.5,"points"]
[]
[null,"a.","(0.5 points)"]
[]
[null,null,"How are Canadian employment insurance benefits funded?"]
[]
[null,"b.","(0.75 points)"]
[]
[null,null,"Describe the tax treatment of employment insurance premiums for:"]
[null,null,"i","employer"]
[null,null,"ii","employee"]
[null,null,"iii","self-employed individual"]
[]
[null,"c.","(0.25 points)"]
[]
[null,null,"Describe the tax treatment of employment insurance benefits."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"10","index":10,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",10]
["Points:",1,"points"]
[]
[null,"a.","(0.5 points)"]
[]
[null,null,"The Insurance Corporation of British Columbia has recently become concerned about"]
[null,null,"availability and affordability of auto insurance. Identify 2 issues of concern. (You do"]
[null,null,"not have to state the correpsonding target outcome.)"]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"According to \"ICBC Affordable and effective auto insurance – A new road forward for"]
[null,null,"British Columbia\", idenitify 2 guiding principles of an effective auto insurance system."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"11","index":11,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",11]
["Points:",3.75,"points"]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"Identify 3 reasons that coverage for overland flooding has generally not"]
[null,null,"been offered to residential customers in Canada."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Identify 2 areas of government under-investment in risk planning and mitigation."]
[]
[null,"c.","(1 point)"]
[]
[null,null,"Identify 4 preconditions for good flood risk management."]
[]
[null,"d.","(1.5 points)"]
[]
[null,null,"Suppose you're given the following information regarding flood risks and potential"]
[null,null,"risk mitigation strategies:"]
[]
[null,null,"Let"]
[null,null,"  t = time horizon in years",null,null,null,"C1 = cost of infrastructure (millions)"]
[null,null,"  f = frequency of flood",null,null,null,"C2 = cost to society (millions)"]
[null,null,"  s = severity of flood",null,null,null,"(Assume premium charged = expected losses)"]
[]
[null,null,"# properties",null,null,null,60000]
[null,null,"property value",null,null,null,200000]
[null,null,"flood damage as a % of property value",null,null,null,0.1]
[]
[null,null,"risk management option",null,null,null,"cost","flood return period"]
[null,null,"1) no infrastructure investment",null,null,null,0,50]
[null,null,"2) build a floodway",null,null,null,125000000,250]
[]
[null,null,"In the following table:",null,null,"C2 = [(#homes) x (s) x (f)]/1,000,000 + C1 "]
[]
[null,null,"option","t","# homes","s","f","C1","C2"]
[null,null,1,1,60000,20000,{"$f":"1/H33*D39","v":0.02},0,{"$f":"E39*F39*G39/1000000+G33/1000000","v":24}]
[null,null,1,10,60000,20000,{"$f":"1/50*D40","v":0.2},0,{"$f":"E40*F40*G40/1000000+G33/1000000","v":240}]
[null,null,2,1,60000,20000,"A",125,"C"]
[null,null,2,10,60000,20000,"B",125,"D"]
[]
[null,null,"Calculate:"]
[null,null,"i","A,B,C,D"]
[null,null,"ii","the value of t where option 1 starts being more expensive to society than option 2"]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[null,null,2,1,60000,20000,"A",125,"C"]
[null,null,2,10,60000,20000,"B",125,"D"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"12","index":12,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",12]
["Points:",2.25,"points"]
[]
[null,null,"A Canadian P&C company holds the following 3 bonds. Assume the company is an"]
[null,null,"income tax exempt corporation and that it has no other investments. (Amounts in 000s.)"]
[]
[null,null,"AV = Amortized Value",null,null,null,"* Values given are year-end values"]
[null,null,"MV = Market Value / Fair Value"]
[]
[null,null,"Transit",null,"AV","MV","Coupon","AV","MV"]
[null,null,"Bond","Class",2016,2016,"in 2017",2017,2017]
[null,null,"STM","HTM",3000,3500,40,2900,3400]
[null,null,"TTC","AFS",4000,3900,75,4200,4000]
[null,null,"GRT","HFT",1050,1100,25,1075,1150]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"Determine the value of each bond to be shown in the 2017 year-end financial statements."]
[]
[null,"b.","(1 point)"]
[]
[null,null,"Calculate the impact of holding these investments on net income and other comprehensive"]
[null,null,"income in 2017."]
[]
[null,"c.","(0.5 points)"]
[]
[null,null,"Assume the market rate increases on Jan 1, 2018. What effect does an AFS bond have on net"]
[null,null,"income, other comprehensive income, and equity?"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"13","index":13,"n_rows":96,"n_cols":11,"rows_kept":96,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",13]
["Points:",7,"points"]
[]
[null,"a.","(2 points)"]
[]
[null,null,"Given the following information, calculate the MCT capital available."]
[]
[null,null,null,"qualifying category A common shares",null,null,null,24000]
[null,null,null,"contributed surplus",null,null,null,3000]
[null,null,null,"Retained Earnings",null,null,null,5500]
[null,null,null,"reserves",null,null,null,5000]
[null,null,null,"AOCI",null,null,null,6500]
[null,null,null,"qualifying category B instruments",null,null,null,16500]
[null,null,null,"qualifying category C instruments",null,null,null,6500]
[null,null,null,"non-controlling interests",null,null,null,600]
[]
[null,null,"You'll also need some information on reinsurance ceded to unregistered reinsurers:"]
[]
[null,null,null,"UEP ceded:","($) UnEarned Premiums ceded to assuming reinsurer"]
[null,null,null,"O/S Recov:","($) OutStanding losses Recoverable from assuming reinsurer"]
[null,null,null,"Reins Recv:","($) Reinsurance Receivable"]
[null,null,null,"Reins Pay:","($) Reinsurance Payable"]
[null,null,null,"NOD:","($) Non-Owned Deposits (RSA + Other) & includes FUNDS to secure pmt"]
[null,null,null,null,"from assuming insurer (the FUNDS inclusion is new for 2018)"]
[null,null,null,"LOC:","($) Letters Of Credit"]
[]
[null,null,null,"UEP","O/S","Reins","Reins"]
[null,null,null,"ceded","Recov","Recv","Pay","NOD","LOC"]
[null,null,null,18000,8000,3000,6000,8000,5000]
[]
[null,"b.","(4.5 points)"]
[]
[null,null,"Given the following information, calculate the MCT minimum capital required."]
[]
[null,null,null,"Line of","net",null,null,"* net unpaid is discounted but excludes"]
[null,null,null,"Business","unpaid *","margin",null,"   PfADs"]
[null,null,null,"Line 1",45000,0.16]
[null,null,null,"Line 2",77000,0.11]
[]
[null,null,null,"Line of","prem",null,"DWP","AWP","CWP"]
[null,null,null,"Business","liabs","margin","(12 mths)","(12 mths)","(12 mths)"]
[null,null,null,"Line 1",20000,0.19,80000,20000,9000]
[null,null,null,"Line 2",58000,0.15,121000,23000,29000]
[]
[null,null,"Question continues on next page…"]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:","13 (continued)"]
[]
[null,null,"These 2 amounts relate to components of insurance risk:"]
[]
[null,null,null,"capital required for unregistered reinsurers:",null,null,null,null,3900]
[null,null,null,"capital required for catastrophes:",null,null,null,null,3000]
[]
[null,null,"The capital required for interest rate risk is:",null,null,null,null,3500]
[null,null,"The capital required for foreign exchange risk is:",null,null,null,null,500]
[null,null,"The capital required for equity risk is:",null,null,null,null,4000]
[null,null,"The capital required for real estate risk is:",null,null,null,null,1000]
[null,null,"The capital required for credit risk is:",null,null,null,null,4530]
[]
[null,null,"Here is some more information that you'll need:"]
[]
[null,null,null,"AWP(ig):","($) AWP (last 12 mths) from intra-group pooling"]
[null,null,null,"CWP(ig):","($) CWP (last 12 mths) from intra-group pooling"]
[]
[null,null,null,"DWP","AWP","CWP","growth","AWP(ig):","CWP(ig):"]
[null,null,null,201000,43000,38000,0.21,0,0]
[]
[null,null,null,null,null,null,"risk factor"]
[null,null,null,"DWP over last 12 months",null,null,2.5000000000000001E-2]
[null,null,null,"AWP over last 12 months",null,null,1.7500000000000002E-2]
[null,null,null,"CWP over last 12 months",null,null,2.5000000000000001E-2]
[null,null,null,"AWP(ig) over last 12 months",null,null,7.4999999999999997E-3]
[null,null,null,"CWP(ig) over last 12 months",null,null,7.4999999999999997E-3]
[null,null,null,"premium growth above 20%",null,null,2.5000000000000001E-2]
[null,null,null,"capital factor *",null,null,8.5000000000000006E-2]
[]
[null,null,null,"* capital factor applies to total capital required BEFORE operational risk margin"]
[null,null,null,"   and diversification credit."]
[]
[null,"c.","(0.5 point)"]
[]
[null,null,"Calculate the MCT ratio and state whether it is above or below the supervisery target."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"14","index":14,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",14]
["Points:",1.25,"points"]
[]
[null,"a.","(1.25 points)"]
[]
[null,null,"Calculate the excess (deficiency) ratio for AY 2016 and state whether it's an"]
[null,null,"excess or a deficiency."]
[]
[null,null,"Incremental Paid Loss for Calendar Year",null,null,null,null,"Discounted UCAE at end of Cal. Yr."]
[null,null,"AY",2016,2017,2018,null,"AY",2016,2017,2018]
[null,null,2016,102000,28600,7700,null,2016,129000,100600,91500]
[null,null,2017,null,81000,21100,null,2017,null,128000,81900]
[null,null,2018,null,null,103000,null,2018,null,null,149000]
[]
[null,null,"Investment Yield for 2017:",null,null,3.1E-2]
[null,null,"Investment Yield for 2018:",null,null,2.8000000000000001E-2]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"15","index":15,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",15]
["Points:",2.75,"points"]
[]
[null,"Suppose you're given the following information"]
[]
[null,null,null,null,null,"current","prior"]
[null,null,"balance sheet item",null,null,"year","year"]
[null,null,"GWP",null,null,135000,133770]
[null,null,"U/W Income",null,null,4050,4700]
[null,null,"Income from Subs",null,null,150,175]
[null,null,"Realized Gains",null,null,600,600]
[null,null,"Total Investment Income",null,null,4900,6000]
[null,null,"NI (Net Income) preTax",null,null,{"$f":"F10+F11+F13","v":9100},{"$f":"G10+G11+G13","v":10875}]
[null,null,"Total Tax",null,null,5600,5800]
[null,null,"Total Assets",null,null,140000,142000]
[null,null,"Equity",null,null,47000,50000]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"Calculate ROE, ROR, ROA (Return on Equity, Return on Revenue, Return on Assets)."]
[]
[null,"b.","(1 point)"]
[]
[null,null,"Using part (a), and given that the MCT ratio for this company is 155%, comment on the"]
[null,null,"financial health of the company."]
[]
[null,"c.","(1 point)"]
[]
[null,null,"The auditor discovered an error in the above table regarding the equity for the current year."]
[null,null,"i","Assuming the other values in the table are correct, recalculate the current year's"]
[null,null,null,"equity. (Assume no dividends were paid to shareholders, and no equity"]
[null,null,null,"investments or contributions were made to the company.)"]
[null,null,"ii","Recalculate ROE using the revised equity. Does this change your evaluation of"]
[null,null,null,"the company's financial health?"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"16","index":16,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",16]
["Points:",2.25,"points"]
[]
[null,"a.","(2.25 points)"]
[]
[null,null,"Given the following information, calculate the TOTAL NET COMMISSIONS. Note that I've"]
[null,null,"used abbreviations in the table so the table would fit in the width of the page."]
[]
[null,null,"DFcomm:","  Deferred Commissions",null,null,null,"@ start:","at start of year"]
[null,null,"UEcomm:","  Unearned Commissions",null,null,null,"@ end:","at end of year"]
[]
[null,null,"(02)","(03)","(04)","(05)","(06)","(07)","(08)","(09)","(10)"]
[null,null,"DFcomm","UEcomm","commissions in respect of WP",null,null,null,"DFcomm","UEcomm","Net"]
[null,"LOB","@ start","@ start","Direct","Assm'd","Ceded","Net","@ end","@ end","Comm"]
[null,1,1400,null,1000,100,400,null,1600]
[null,2,1600,null,1500,null,400,1200,1900]
[null,"Tot",{"$f":"SUM(C16:C17)","v":3000},null,{"$f":"SUM(E16:E17)","v":2500},null,{"$f":"SUM(G16:G17)","v":800},null,{"$f":"SUM(I16:I17)","v":3500}]
[]
[null,null,null,null,null,null,"gross contingent commissions",null,null,null,600]
[null,null,null,null,null,null,"ceded contingent commissions",null,null,null,150]
[null,null,null,null,null,null,"gross other non-deferrable commissions",null,null,null,300]
[null,null,null,null,null,null,"ceded other non-deferrable commissions",null,null,null,50]
[null,null,null,null,null,null,"ceded commission income (LOB1 + LOB2)",null,null,null,1200]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"17","index":17,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",17]
["Points:",2.25,"points"]
[]
[null,"a.","(1 point)"]
[]
[null,null,"Calculate the earthquake reserve component using the model method with phase-in. (EPR is"]
[null,null,"the earthquake premium reserve.)"]
[]
[null,null,"Year",2018]
[null,null,"deductible",20000]
[]
[null,null,"EastCan.PML.500",null,40000,null,"EastCan.PML.420",null,25000]
[null,null,"WestCan.PML.500",null,160000,null,"WestCan.PML.420",null,125000]
[]
[null,null,"EPR",null,29600,null,"EastCan.PTIV",null,46800]
[null,null,"Financial Resources",null,55000,null,"WestCan.PTIV",null,196800]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Identify and briefly describe 2 principles of earthquake risk management."]
[]
[null,"c.","(0.75 points)"]
[]
[null,null,"Identify and briefly describe 3 sound earthquake modeling practices."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"18","index":18,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",18]
["Points:",3,"points"]
[]
[null,"For each of the following scenarios, evaluate whether risk transfer has occurred and briefly"]
[null,"explain your answer. Your explanation may be either qualitative or quantitative as approprate."]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"An individual purchases an annual auto insurance policy for $2,000 with no deductible and a"]
[null,null,"limit of $500,000. There is a 20% probability of loss within the year and an expected"]
[null,null,"severity of $25,000."]
[]
[null,"b.","(0.75 points)"]
[]
[null,null,"A risk manager purchases an annual 100% quota-share policy for $750,000. The portfolio"]
[null,null,"contains 800 policies. The individual loss distribution is given in the table below:"]
[]
[null,null,null,"probability of loss",null,"severity of loss"]
[null,null,null,0.95,null,0]
[null,null,null,0.05,null,12000]
[]
[null,"c.","(0.75 points)"]
[]
[null,null,"A risk manager purchases an aggregate excess-of-loss policy with the following terms:"]
[]
[null,null,null,"    coverage:",null,null,"20m excess of 10m"]
[null,null,null,"    aggregate limit:",null,null,"20m"]
[null,null,null,"    aggregate deducible:",null,null,"2m"]
[null,null,null,"    premium:",null,null,"3m"]
[]
[null,null,"The loss distribution for the portfolio is as follows:"]
[]
[null,null,null,"probability of loss",null,"severity of loss"]
[null,null,null,0.8,null,0]
[null,null,null,0.1,null,"5m"]
[null,null,null,0.1,null,"15m"]
[]
[null,"d.","(0.75 points)"]
[]
[null,null,"A risk manager purchases a policy with the following terms:"]
[]
[null,null,null,"premium:",null,1000]
[null,null,null,"probability of loss:",null,0.06]
[null,null,null,"expected severity:",null,150,"(net of premium)"]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"19","index":19,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",19]
["Points:",3.5,"points"]
[]
[null,"a.","(1 point)"]
[]
[null,null,"Given the following information about Company A and Company B, explain whether"]
[null,null,"the appointed actuary can conclude whether each company is in good financial condition."]
[]
[null,null,"Company A",null,"Metric",2019,2020,2021]
[null,null,"Base Scenario",null,"MCT Ratio",1.5,1.75,2]
[null,null,null,null,"Capital (000s)",10000,15000,20000]
[null,null,"Adverse Scenario",null,"MCT Ratio",1.2,1.55,1.6]
[null,null,null,null,"Capital (000s)",-5000,10000,15000]
[]
[null,null,"Company B",null,"Metric",2019,2020,2021]
[null,null,"Base Scenario",null,"MCT Ratio",2,1.75,1.5]
[null,null,null,null,"Capital (000s)",2000,1000,300]
[null,null,"Adverse Scenario",null,"MCT Ratio",1.3,1.2,0.9]
[null,null,null,null,"Capital (000s)",500,200,1E-3]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"If you were given the choice of investing in either Company A or Company B, based"]
[null,null,"only on the information given above, what would you do? Briefly explain your answer."]
[]
[null,"c.","(1 point)"]
[]
[null,null,"Suppose the adverse scenario in Company A is an increase in frequency and severity"]
[null,null,"of losses due to a hurricane. Identify 2 possible ripple effects and 2 possible management"]
[null,null,"actions."]
[]
[null,"d.","(1 point)"]
[]
[null,null,"Define the following terms:"]
[null,null,"i","plausible adverse scenario"]
[null,null,"ii","reverse stress testing"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
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[]
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[]
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[]
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[]
[]
[]
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[]
[]
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[]
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[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"20","index":20,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",20]
["Points:",3.5,"points"]
[]
[null,"a.","(1.5 points)"]
[]
[null,null,"Calculate the APV (Actuarial Present Value) of the unpaid loss."]
[]
[null,null,"net unpaid at 12 months",null,null,61000,null,"MfAD(inv)",null,"75 bps"]
[null,null,"ceded unpaid at 12 months",null,null,2000,null,"MfAD(claims)",null,0.1]
[null,null,"discount rate",null,null,7.4999999999999997E-2,null,"MfAD(re)",null,0.12]
[]
[null,null,"Age","Cumulative Paid Loss %"]
[null,null,12,0.4]
[null,null,24,0.8]
[null,null,36,1]
[]
[null,"b.","(0.75 points)"]
[]
[null,null,"Identify the standard ranges for margins for adverse development for:"]
[null,null,"i","claims development"]
[null,null,"ii","reinsurance ceded"]
[null,null,"iii","investment return rate"]
[]
[null,"c.","(1.25 points)"]
[]
[null,null,"Can you rank the following reserve analysis situations from 'lowest to highest' in terms"]
[null,null,"of the claims development '% risk margin' each would require on their point estimates?"]
[]
[null,null,"A","1 severe hurricane event (1 month old)"]
[null,null,"B","5,000 auto liability claims (AY 17 at 12/31/17), company has good operations"]
[null,null,"C","2,500 auto liability claims (AY 17 at 12/3117), company has good operations"]
[null,null,"D","5,000 auto physical damage claims (AY 17 at 12/3117), company has good opns"]
[null,null,"E","1,000 auto physical damage claims (20 year-old accident year), all claims settled"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"21","index":21,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",21]
["Points:",1.75,"points"]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"Identify and briefly describe 3 categories of risk considered in A.M. Best BCAR."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Briefly describe 1 difference between the Canadian and American BCAR calculation."]
[]
[null,"c.","(0.5 points)"]
[]
[null,null,"Identify a conceptual difference between MCT and BCAR regarding the time horizon."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
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[]
[]
[]
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[]
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[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"22","index":22,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",22]
["Points:",2,"points"]
[]
[null,"a.","(0.75 points)"]
[]
[null,null,"Identify 3 considerations in determining concentration risk of an insurer."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Briefly describe the 2 approaches which account for the time value of money when"]
[null,null,"evaluating the runoff of claims liabilities."]
[]
[null,"c.","(0.75 points)"]
[]
[null,null,"Identify 3 considerations in determining the interest rate used to discount policy liabilities."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"23","index":23,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",23]
["Points:",3,"points"]
[]
[null,"a.","(0.5 points)"]
[]
[null,null,"Rating agencies are supposed to provide reliable financial strength ratings to insurers."]
[null,null,"Examples of well known rating agencies are A.M. Best, Moody's, and Standard & Poor's."]
[null,null,"Identify 2 shortcomings of rating agencies."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Rating agencies often use a rating method called 'interactive rating'. Define this term."]
[]
[null,"c.","(1.25 points)"]
[]
[null,null,"Identify the 5 steps in the interactive rating methodology."]
[]
[null,"d.","(0.75 points)"]
[]
[null,null,"Interactive ratings can be intrusive, time-consuming, and expensive. Identify 3 reasons"]
[null,null,"that insurers participate in them anyway."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"24","index":24,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",24]
["Points:",2,"points"]
[]
[null,"a.","(1.5 points)"]
[]
[null,null,"Describe 3 key elements of ORSA."]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Comment on the following statement:"]
[]
[null,null,"  All federally regulated companies must implement the same ORSA process."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"25","index":25,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",25]
["Points:",4,"points"]
[]
[null,"a.","(1.5 points)"]
[]
[null,null,"According to the CIA paper on modeling, define the following terms:"]
[null,null,"i","model"]
[null,null,"ii","model elements"]
[null,null,"iii","model risk"]
[]
[null,"b.","(0.5 points)"]
[]
[null,null,"Model risk is measured across 2 dimensions. Identify these dimensions."]
[]
[null,"c.","(2 points)"]
[]
[null,null,"Given the following information, use the 2-dimensional model risk rating system to"]
[null,null,"evaluate the overall model risk."]
[]
[null,null,"task:","forecast capital requirements"]
[null,null,"method:","used an established Excel model of moderate complexity with only minor updates"]
[]
[null,null,"model risk considerations:"]
[null,null,"  - capital requirements are significant"]
[null,null,"  - model is used frequently"]
[null,null,"  - there is excellent documentation for the model"]
[null,null,"  - the 2 best actuarial analysts in the company are running the model"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"26","index":26,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",26]
["Points:",2.25,"points"]
[]
[null,"a.","(0.5 points)"]
[]
[null,null,"State the definition of materiality."]
[]
[null,"b.","(1 point)"]
[]
[null,null,"Based on company characteristics, which company would you expect to have a more"]
[null,null,"rigorous materiality level in each of these scenarios (more rigorous means lower.)"]
[null,null,"Briefly explain."]
[]
[null,null,"  Scenario 1:"]
[null,null,"    Company A has a surplus of 100 million"]
[null,null,"    Company B has a surplus of 20 million"]
[]
[null,null,"  Scenario 2:"]
[null,null,"    Company C started operation in 1920"]
[null,null,"    Company D started operation in 2010"]
[]
[null,"c.","(0.75 points)"]
[]
[null,null,"Identify considerations regarding the disclosure of materiality in actuarial"]
[null,null,"communications."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"27","index":27,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",27]
["Points:",1.75,"points"]
[]
[null,"a.","(0.25 points)"]
[]
[null,null,"Define the term 'subsequent event'."]
[]
[null,"b.","(1.5 points)"]
[]
[null,null,"The Appointed Actuary of a property and casualty insurance company is valuing policy\n"]
[null,null,"liabilities as at December 31, 2017. The report date is February 22, 2018. For each of\n"]
[null,null,"the following scenarios, briefly discuss the actions that the Appointed Actuary should\n take."]
[]
[null,null,"i","A severe winter storm occurred on Jan 15, 2017."]
[]
[null,null,"ii","On Feb 1, the IT department notified the actuary regarding a significant volume"]
[null,null,null,"of claims missing from the 2017 claims database."]
[]
[null,null,"iii","In this part, suppose the company is a reinsurer. A case reserve increase by the"]
[null,null,null,"ceding insurer was not reported to the appointed actuary at the reinsurer"]
[null,null,null,"until Feb 5."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]

{"sheet":"28","index":28,"n_rows":95,"n_cols":11,"rows_kept":95,"cut":false,"hidden":false,"merged":[]}
["Exam:","BattleActs 6C Practice Exam 1 (2018.Fall)"]
["Question:",28]
["Points:",2.75,"points"]
[]
[null,"a.","(1 point)"]
[]
[null,null,"Briefly describe 4 qualifications that OSFI expects an appointed actuary to possess."]
[]
[null,"b.","(1 point)"]
[]
[null,null,"Briefly describe 4 roles or duties of the Appointed Actuary (AA)."]
[]
[null,"c.","(0.75 points)"]
[]
[null,null,"Identify 3 objectives of a peer reviewer."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["----","----","----","----","----","----","----","----","----","----","----"]