2019_1-Spring Question 19 Part e
The examiner reports stated that
"Common errors included:
Identifying this event as a subsequent event, which was not the case as the catastrophe
occurred after the report date. Assuming that a catastrophic event would automatically
invalidate the report. This is not necessarily the case if the event is not material to the
company. "
The definition of subsequent event is defined as "an event (of which an actuary first becomes aware) AFTER the CalcDt but BEFORE the corresponding report date"
So in this case, the actuary is aware of the catastrophic event, AFTER the calculation date but BEFORE the report date. Based the definition, it doesn't mention any specific condition on the accident date, so my understanding is it should satisfy the condition of subsequent events. Correct me if my logic is wrong.
Comments
Hello,
The event in question occurred after the report date in this particular question. Are you possibly getting mixed up with the actual report date and board presentation? For the latter case it has no impact on whether an event should be considered as subsequent or not.
Hello,
I still kinda don't understand why this is not the subsequent event.
A. Subsequent event is defined as an event (of which an actuary first becomes aware) AFTER the CalcDt but BEFORE the corresponding Rpt Date
The Calculation Dt is Decem 31, 2018; Report date is the presentation to the Board (No?)
Here: the event occurs after the report date (assume the actuary is aware of this as of the accident date). In addition, this date is BEFORE the Report date (presentation to the Board) => Hence, isn't it a subsequent event?
Am I missing anything?
Ohh. Nevermind, the report date is the date on which the actuary completes his/her work. so this is not a subsequent event!