Quiz: BCAR Calculation of B5
Seems the excess growth factor can't be lower than 1? For example if the actual 1yr and 3yr annual growth rate are lower than 3% and 5% respectively, So shall we update the formula to:
Selected growth factor = max(1-yr indicated, 3-yr indicated, 1)
Comments
Yes, that's correct. I've adjusted presentation to clarify that. Thx!
Hi Graham,
When calculating the Excess Growth Factor in B5, may I know why we shall use # of Inforce Policies for Direct Insurer and GWP for Reinsurer?
Thanks and Warm Regards,
Wilson
This is stated in the reading without explanation so it isn't something you would have to know for the exam.
SUPER!