Typo in Battle Card?

flipcatflipcat
in Dutil.FA

In the Battle Card: (FARM, RSP) operational differences regarding - # customers placed, it said
RSP: depends on province, usually a % of: (T.V.PPA.NF.TPL) direct car-yrs, that is, (total, voluntary, PPA, non-Fleet, TPL) direct WE
Shouldn't this be EE?

Comments

  • grahamgraham

    Yes, thx. I've edited it.

  • grahamgraham

    Update:

    I believe the original version was correct. It should be WE (Written Exposures) rather than EE (Earned Exposures). The source text uses the term "car-years" instead of exposures but the terms are equivalent.

  • divyacdivyac

    In the wiki, under "A Game Insurers Play" it says Earned Exposures, should that be Written Exposures too?

  • grahamgraham

    Yes, that's correct. I've added a boxed note to that section to clarify:

  • ibsyibsy

    Hi Graham,

    I struggle reconciling your point on WE with the following sample answer for question 10 of Fall 2018 exam, asking for difference between ON and AB RSP:
    "ON – participation rate based on # ceded & # not ceded to pool;
    AB – based on earned exposure not ceded to pool."

    So is AB based on EE, and not WE as you mentioned?
    Also for ON, by "# ceded & # not ceded to pool", are we still talking of # of WE?

    Thanks.

  • grahamgraham

    I think the examiner's report is incorrect. It should say written exposures. Here's the relevant paragraph from the source text:

  • ibsyibsy

    Thanks!

  • ibsyibsy

    Hi Graham,

    I just realized that the extract you mentioned here is regarding "the maximum total allowable transfer", while I believe the topic of the discussion was the Participation Rate.

    Also in the wikipage, in the "A Game Insurer play" section, you mention: "According to the first paragraph on page 6 of the source text, it is written exposures." while talking about the Participation Rate.
    But when reading closely that paragraph on page 6, I see that it also talks specifically about maximum total allowable transfer (and not participation rate): "The FA has set the** maximum total allowable** transfer to 5% of the members voluntary private passenger non-flee **written **exposures"
    So in both of these extracts, I didn't see participation rate explicitly mentioned.

    But in the last paragraph of page 4, the text explicitly mentions participation rate and I understand links it to earned exposures:

    "Every company shares in the financial results of a particular pool based on a participation ratio determined using a proportion of their total voluntary private passenger, non-fleet, TPL direct earned exposures (car years)..."

    Therefore shouldn't it be EE instead of WE for the participation rate? Meaning that the examiner report of question 10 of Fall 2018 exam was right after all?

    Thanks.

  • grahamgraham

    I think I may have caused confusion here because I wasn't careful about whether we were talking about loss sharing or transfer limits. I've gone back and pulled the relevant paragraphs from the text.

    For loss sharing, the source text says to use EE (Earned Car-Years):

    For transfer limits the source text says to use WE (Written Car-Years):

    So, yes, it looks like the exam problem was correctly using EE after all.

  • ibsyibsy

    Thanks Graham for the clarification.

  • hiqbalhiqbal

    I got really confused by this as well. Might be useful to specificallly highlight this in the wiki article; where to use WE and where to use EE so others don't have to face the same confusion.

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