2017 Spring 19
are we ignoring the reinsurance cvg if it's not "phase-in" approach?
Is my calculation correct?
Countrywide PML 500
= [80,000^1.5 + 300,000^1.5] ^ (1/1.5)
= 326,946
Financial Resources
= 10% of Capital and Surplus
= 0.1(55,000 + 175,000 + 40,000)
= 27,000
ER
= (0 + 326,946 - 27,000)*1.25
= 374,933
Comments
Why would you ignore the reinsurance coverage? Also phase-in approach is no longer relevant
so what is the calculation for reinsurance cvg for non-phase-in approach?
It is the same