Another question regrading RSPs
Would like to confirm if this is likely to be accepted by CAS.
Regarding the question: Are RSPs profitable?
My answer on a CAS exam: No, since these risks are written and offloaded into RSPs assuming the premium was inadequate in some way and the RSPSs contain the worst risks of each ceding company's portfolio. As a result, it is highly unlikely for the RSP to generate profit.
good?
Thank you
Comments
It is a good answer but I think it depends on the number of points assigned to such a question. I would refer you to https://www.battleactsmain.ca/pdf/Exam_(2015_1-Spring)/(2015_1-Spring)_(12).pdf where there are a few more points that can be added to the answer.
Thanks Javid