MickyB
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Hi, so I understand we deduct from capital avialable only when (A+B+C)-(D+E+F+G+H) is greater than 0. But My understanding is we only deduct it from the capital available amounts and its one of the "adjustments" that we make to capital available. In…
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I have the same question as Marianne. On top of that: * How does this relate to the Bonus Question in the excel file practice questions where we use minimum capital required*1.5? * Also, in part A we remove the diversification credit just to…
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are the limits of 400K and 500K for just the indemnity component (based on the formula) do those apply to the overall total as well? Indem + unearned prem component?
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okay and in general it when does it need to be used? when discounting to calculate the LRC?
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Is the quantile method the same thing as the confidence level method? I see the confidence level method for calculating RA in the appendix but not sure where it comes from
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are the additional recovery amounts only for the indemnity component? I am just thinking that the full unearned premium amount is 750 -> (9/12)*(1000) ... but they only recieve 525 for the unearned premium component. Why don't get the rest of the…
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Hi, for this question for the Net Leverage, the standard is 400% in the answers but its 500% in the wiki page. Thoughts?
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Hi, so sample question 17 in the IFRS problem has: * PAA LRC (excl LC) = premiums received - Insurance revenue - DAC. I believe given insurance revenue = earned premium typically, we are calculating the "unearned" from taking premiums received…
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In the practice IFRS question 18, it did require you to calculate it. Do you have any guidance on this or how they came up with .33?
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For practice problem 1, the mct ratio > internal target but here asses are also lower then liabilities for 3 out of the 4 forecast periods... is it still a pass if the base scenario wouldn't pass if it was the solvency scenario?
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Okay great thank you and one other thing... I am finding the concept and treatment of acquisition cash flows very confusing. * What is the treatment of acquisition cash flows in GMA vs PAA? my understanding is that: For LRC GMA -> acqui…
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for the discounting of LIC, are the two points under ifrs 17 both required or is it one or the other? for example what if PAA is used for LRC but cash flows are greater than a year (didn't meet first threshold but meets the second threshold that it …
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Also a possible mistake, quiz 3 asks: (6.12.3) What must the Appointed Actuary do if the entity's discount curves differ from the reference curves? The answer that is shown as correct is: Only use the entity's discount curves for all calculatio…
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yes so wouldn't premium received - unearned insurance revenue = earned premium? My understanding of the example is that it is taking it as premium received - unearned insurance revenue = unearned premium
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Can you clarify the formula for LRC for PAA? PAA LRC = unearned premium - DAC. Isn't unearned insurance revenue = unearned premium or is that wrong? The example is taking: premium received - unearned insurance revenue to be = unearned premium.
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One of the battlecard quiz questions asks: is a group PAA eligible if an insurer expects significant variability in the FCFs? The answer states: no, this disqualifies use of PAA However in the textbook it states that: An expectation of signific…
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Hi, I think I found the excel sheets but 2 things: 1. The number of appendices described in the source (up to 9) doesn't match the actual number of appendices in the excel file. I think it has likely just been arranged from what I see and the notes…
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I am a bit confused on the exit costs. I thought surrender penalties was what we charge the PH for surrendering a policy, so if we charge them MORE for exiting, doesn't that mean we have more cash (instead of charging them less for exiting) so we ar…
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Sorry I meant LC as in loss component not Liability for Incurred claims (LIC). Where I saw these things were in reference to the LC, not LIC. Section 4.8 in the LRC paper states: if there are no changes in underlying assumptions: → LC is expecte…
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So to clarify, LRC = 0 at initial measurement but what happens after initial measurement? If LRC still = FCF + CSM, is CSM still = -FCF and would that mean LRC still equal 0 throughout? I know this doesn't make sense but what am I missing here to ma…