Undiscounted excess/deficiency ratio

qweiiqweii
edited August 2018 in General

Hi Graham,

The question I'm referring to is problem #4 on CCIR.ARinstr (Spring 2016 #14a).

I don't understand the sample answers. How do you get the numbers? The formula is very different from the ones used to calculate excess ratio in problem #1 (why do you divide by incremental paid of 2000?).
Also, the two answers provided are so different. Why?

Comments

  • grahamgraham
    edited February 2019

    Hi qweii

    The solution in the examiner's report is very confusing. You're not the first person to ask this question so I decided to add a wiki page with the explanation. You can get there using this link:

    http://www.battleactsmain.ca/wiki6c/Explanation_for_2016.Spring_14a

    or go to the CCIR.ARinstr article and read the note above the 2nd table in the section called Actual Exam Problems. Here's the link to that:

    http://www.battleactsmain.ca/wiki6c/CCIR.ARinstr#Actual_Exam_Problems

    Let me know if the explanation I've provided isn't clear. This is one of those problems that you must definitely know how to do!

  • GuillaumeVGuillaumeV

    I think the wiki is very helpful for this one. The subtle difference in this question is that they are giving Ultimate instead of Liabilities / Unpaid. To come back to the calculation you are used to do, you need to remove the paid from the ultimate to get back to the unpaid.

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