Duration of prem liabilities

SsviraniSsvirani
in CIA.PrLiabs

Hi

For the duration of premium liab the method mentioned in wiki article is different from what they have done for question 15 on fall 2016 exam. Any reasons for that ? I assume I just use the method in wiki article since the methodshown in the wiki article is in line with spring 2018 qs 14.

Thanks

Comments

  • grahamgraham

    The question 2016.Fall Q15 is from an outdated version of the premium liabilities paper. If you look in the examiner's report for 2018.Spring Q14, there is a comment from the examiners on the last page of the solution that now warns test-takers to not use the old method. So yes, use the method from 2018.Spring Q14.

    Side note: I didn't flag the 2016.Fall problem as outdated in the BattleCards because it was just that one small part that was outdated. The rest of the problem is still very relevant.

  • SsviraniSsvirani

    Thanks a lot :)

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