Spring 2016 #28b
in CIA.Subseq
Based on the marks and given answer, I think the question should be re-worded as "... should be classified as an adjusting event." instead of "subsequent event"?
Comments
An event can be both a subsequent event and an adjusting event so I think the statement of the question is ok. (Unless I've misunderstood what you're saying.)
To quote the wordings from (b)
" Using the subsequent event decision tree, assess whether or not this event should be classified as a subsequent event " (1.25 pts).
Based on the question wordings, we should be able to identify if an event is 'subsequent' solely based on the date of actuary first became aware of the event. The question did not mention 'adjusting event' anywhere else.
To circle back to my original question, is this more of a wording issue, or are we expected to go through the end of decision tree to give a more comprehensive view in this type of question?
Ok, I'm with you now. I believe this was actually a defective exam question because you don't need the decision tree to assess whether it's a subsequent event. For that, you only need the calculation date and report date. If the actuary becomes aware of the event in between those 2 dates then it's a subsequent event.
The question really meant to say: "Use the decision tree to determine the appropriate course of action."
I know someone who submitted an appeal for this question. For their answer, this person simply stated whether or not this was a subsequent event but did not specify an action because the question did not ask for an action. I believe the appeal should have been successful but unfortunately it was not.
To answer your question, the graders did want you to give a more comprehensive answer and specify an action based on the decision tree (not just say whether or not it's a subsequent event.)