Do you feel like that's something we should memorize, or you would expect the CAS to give us that table in order to interprate BCAR (probably not lol).
I'd be very surprised if they gave you that table on the exam!
Also, I found the layout of the table confusing, so I reorganized it in the wiki in a way that makes it easier to understand and interpret, at least for me. (You may have already seen that.)
Glad to see you're looking at this reading! I can't emphasize enough that I think this is a very likely exam topic.
Hi Graham,
I am having trouble understanding how to use this table. Specifically pop quiz b in the wiki - do you mind to explain say for scenario 1, how the rating is "strongest"?
There is a step-by-step method to get the answer here. We're given the following BCAR values at different Var levels for Scenario 1:
73.1, 60.7, 55.6, 53.9
You have to compare these 4 numbers to the cells in the top row of the table, which are:
blank, blank, blank, 25 < BCAR ≤ 100
Then ask whether the inequalities are satisfied. For the top row of the table (strongest category), there is only one inequality and it's satisfied because 53.9 is in the range 25-100. That means you can stop here and conclude that this insurer has the strongest rating.
If the inequality was not satisfied, then you go to the next row in the table and do the same thing. As soon as you find a row where the inequalities are satisfied by the given BCAR values for Var95, Var99, Var99.5, Var99.6 then you can stop.
Comments
I'd be very surprised if they gave you that table on the exam!
Also, I found the layout of the table confusing, so I reorganized it in the wiki in a way that makes it easier to understand and interpret, at least for me. (You may have already seen that.)
Glad to see you're looking at this reading! I can't emphasize enough that I think this is a very likely exam topic.
Hi Graham,
I am having trouble understanding how to use this table. Specifically pop quiz b in the wiki - do you mind to explain say for scenario 1, how the rating is "strongest"?
There is a step-by-step method to get the answer here. We're given the following BCAR values at different Var levels for Scenario 1:
You have to compare these 4 numbers to the cells in the top row of the table, which are:
Then ask whether the inequalities are satisfied. For the top row of the table (strongest category), there is only one inequality and it's satisfied because 53.9 is in the range 25-100. That means you can stop here and conclude that this insurer has the strongest rating.
If the inequality was not satisfied, then you go to the next row in the table and do the same thing. As soon as you find a row where the inequalities are satisfied by the given BCAR values for Var95, Var99, Var99.5, Var99.6 then you can stop.
thank you - that makes sense now!