Certain events like reinsurer default due to gradual deterioration would be an adjusting event and reflected in the work. Their sample answer seems to assume the event was a cat and would only be disclosed. Is it fair to say this is an open ended question where we allowed to assume any event provided it is reasonable and the following logic is sound?
It says it is a material event occurring on Jan 15 2016 so your example there would not be valid as your example does not occur on a single day. I think if its open ended it would be reasonable to assume an event -> This is not one of those situations though. It is pretty obvious here that they are looking for an answer related to a cat
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Why does it matter whether or not its a cat event?
Certain events like reinsurer default due to gradual deterioration would be an adjusting event and reflected in the work. Their sample answer seems to assume the event was a cat and would only be disclosed. Is it fair to say this is an open ended question where we allowed to assume any event provided it is reasonable and the following logic is sound?
It says it is a material event occurring on Jan 15 2016 so your example there would not be valid as your example does not occur on a single day. I think if its open ended it would be reasonable to assume an event -> This is not one of those situations though. It is pretty obvious here that they are looking for an answer related to a cat