2018 Fall #18 J (Gross UEP)

DulcineaDelCADulcineaDelCA
in CCIR.ARinstr

Hi,

In the examiner's solution, 2017 Gross UEP = 2017 Net UEP / retained % = 2000 / 60% = $3333

Is this relationship always true? The reason I ask is that in your Alphabet City Practice Problems (8 questions), I've noticed that the Ceded UEP is not equal to Gross UEP * ceded %. For example in question 1, 2016 gross UEP = 6700 however 2016 Ceded UEP = 2600 which is not 6700 * (1-70%).

Thank you!

Comments

  • grahamgraham

    Well, that certainly is an astute observation. I see now that when I inserted the random numbers in the Excel file for Alphabet City, I forgot to force the ceded amounts to equal the gross amounts x the ceding %. It's close but not exact. I fixed my Excel file but did not regenerate the questions in the wiki. (It shouldn't affect how the calculation is done.)

    You did 100 points damage on the beast. :-)

  • DulcineaDelCADulcineaDelCA

    Alice would be proud!. =)

  • grahamgraham

    Absolutely! Alice gave you a shout-out in the wiki!

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