Staff-T1
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During IFRS4, the recommendations used to be prescribed by the CIA. So yes CIA refers to IFRS4
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Think its just some other miscellaneous Cash Flows
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no it is referring to IFRS17
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Yes the LRC is UEP - DAC. I believe that some of the expenses that fall under DAC would be different under IFRS4 based on my experience. The source doesn't go into too much detail besides saying they are different. This would normally fall under the…
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If PAA is used for LRC but CFs > 1 year then yes you must discount. Simple example, Auto Bodily Injury for Ontario LRC is normally measured with PAA and has CFs > 1 year but you are definitely discounting the LIC
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Yes that's right - Mostly a life insurance concept
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Generally each question will have a "flavour" to it which helps you identify which formula to use -> Mainly because you will only have enough information for one of the formulas and not the other. But in the event that you have enough information…
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We are excluding net income from segregated funds ( I think this is a life insurance concept) which is pretty much all the source material says. I don't think you would need to know than this for the exam.
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Yes that is right. For your second question, based on the syllabus there is no scenario where there is a duty to defend but no duty to indemnify. I am not sure if there have been other cases outside of the syllabus where there is a duty to defend bu…
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If you have reserves of 200M you have options to purchase XOL insurance where losses above a certain amount are covered by the contract. If you choose to purchase a 300M coverage for example, your premium could be 3M. A 400M coverage could cost 2M. …
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Yeah a company can have some contracts on GMM and some contracts under PAA. It depends on your LoB. Generally lines like warranty and title insurance are GMM while the insurer also writers traditional auto and property which are normally PAA
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Yes, DAC = insurance acquisition CF. For your second question, the formula for PAA is correct. At time 0, UEP = Premiums Received and premiums receivable = 0.
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Can you send a screenshot?
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Well no, you should be fine as long as you follow the latest BCAR categories, so stating premium and reserve category is okay. You should not be referring to this specific past solution anymore as it is outdated
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Yup
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You'd completely reverse the losses which flows into P&L, and then amortize the portion that relates to the new profit. For example if you are carrying a loss component of -40, and in this quarter the group of contracts turn profitable; you'd re…
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No, but the process is generally similar to how you'd do an FCT but with a much longer time horizon
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1) As mentioned above, the EPD is the cost of buying an XOL insurance, P with attachment point Z that is at some level higher than your reserves, V. You'd find the value of Z such that EPD Ratio = P/V = 1%. It is not TVaR as the earlier poster right…
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You just have to understand them -> The exam will usually give you one of the pages and you are then required to do some calculations using given info. You are definitely not required to come up regurgitate those tables from memory
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Sorry I do not understand your question - Most of the big insurers (Aviva, Intact, Desjardins) all do business across Canada
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Yes that is a correct interpretation. Although in the context of IFRS17, loss from a contract is recognized immediately in the P&L
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Probably but its pretty obvious what each of them map to. UW risk = premium risk, investment risk = fixed income security and equity security
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B has greater financial flexibility in raising capital, so even if their stressed BCAR score falls below 0 at a given VaR level, which would normally preclude them from maintaining their current rating and would lead to a downgrade, BCAR may subject…
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I don't think the source elaborates more on that so it will probably not be something you have to worry about on the exam
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Not sure probably sometime just after covid. All the past exam questions are paper and pencil though
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@NycxBattle "Can you confirm if this deduction of $3000 from Capital Available is correct?" Yes this is correct. And yes you are both correct for the latter point regarding deduction from unregistered reinsurance. The order should be flipped for …
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Yeah you are right. I think the sample answer is incorrect
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It is stated in the MSA guide that Net Investment Income ** Includes** Realized gains. As I mentioned above, you could assume that other revenue and expenses consist of income from subsidiaries, but you'd have to clearly state your assumption
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Technically yes, if you assume that column (26) only consist of reinsurance premiums that are paid over the course of the policy, but reinsurance payables do not only consist of reinsurance premiums payable. To add further to that point, reinsurance…
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They say the same things differently. I find the ones in the BC easier to memorise. Revenue recognition depends on seasonality. Treatment of reinsurance CF contingent on claims refers to reinstatement premiums while the reinsurance CF not contingent…