Staff-T1
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Tbh I do not know - Only the exam committee knows ~ Everyone else is just guessing
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Yeap pretty much!
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Being incorporated federally means the creation of a company. Being federally licensed means you obtain permission from the regulatory authorities to carry out a certain business
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That is strange - I cannot think of any other 'adjustment to financing component' besides what you mentioned. I think just memorising the formula and doing the calculations as per the Excel will suffice, given the paper doesn't go into much detail o…
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Uhhh maybe someone who has taken a CBT can help you with this! I took all my exams using paper and pen
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Directly attributable acquisition costs are always amortized. If you can't allocate it to a group of contract, how are you supposed to amortize it?
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The 30% in the formula is the risk factor for equity risk, not the cap on operational risk
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A group of contract that is eligible for PAA can still be measured using GMA and combined with a group measured using GMA. Also, I meant nowhere in the question does it say either group 1 or 2 are measured using PAA/GMA. You can then make your own …
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You can be an FCIA but not an FCAS -> Losing your FCAS does not mean you are no longer an FCIA
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Well the investment income taken in the answer key does not include capital gains already so why would you subtract it twice?
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Yup pretty much - I would add that you'd need to say that for a going-concern scenario, you would be between the 90th and 95th percentile
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Credit risk would increase to the extent that you'd need additional collateral yes. I think this is in the context of the insurer purchasing unregistered reinsurance, rather than registered reinsurance
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no, if you pay out a large portion of your inherent value, then remaining value is low again which makes it easier to exit the contract. The wiki is right
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if that is what OSFI says then it is what it is? I have no idea whether the superintendent meant it or not. Your formula unexpired coverage - APV premiums doesn't look like any variation of a PAA or GMM formula to me so I don't think you can say that
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Tbh I am not sure what 'member class limit' explicitly refers to since it is not in the paper and is only referenced in the additional attachment, so you'd probably would not have to know it in the exams
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But why would that be an area of focus? This not really a risk per say as they still have the option to cede risks to a pool. I think this question could accept a wide variety of answers so it varies on a person by person basis, but I would not acce…
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Exit value is the how much the contract is worth currently, liquidity is how quickly you can get the exit value. If you have 30% unearned premium, the value is only 30% of the premium you are paid and it is easy for the insurer to pay you out right …
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No you wouldn't combine groups that are measured under PAA and GMM together. That said, nowhere does it say that either group 1 or 2 are measured under PAA/GMM. They just give you the estimates for both
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It is mainly referring to certain cash flows under IFRS4 that were part of the insurance contract liability but were not classified as such. I can't think of any examples off the top of my head but I believe some ULAE items and some small difference…
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It's a subjective table that is filled up by insurers. If the assessment is done and the risk is low based on the matrix then you'd get a low score
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Gross is direct + assumed. It is a typo on the CAS side. It should be 0.025(7500 + 20000 + growth above 20%) where growth above 20% is 13000 -> 325000(1-1.2/1.25) You will get the answer in the sample if you do this
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Yeah carrying amount at the start of the reporting period is 1200. That's the answer to part (a)
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You should read section 5.6.1 in the LRC paper to give you some clarification on your question. It explains this whole concept pretty well. IFE is the 'adjustment to financing component'
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I am seeing the source text on page 38 and the formula is A + B + C + D - E - F - G - H - I which is the same as the wiki?
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Well for Nova Scotia it does seem like there is still a 'member class limit' which I do not think Ontario has FARM operates in all regions that the facility association operates in and this includes AB. You can see in their auditor's statement he…
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I usually use them interchangeably so I would hope so lol
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Well not really because from option 2 as described by Graham, PACICC would pay the full claim. So technically, with a 500K limit, there would be nothing form the insurer's disbursement
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Yeah, I think it is more appropriate to say the amount + 'CSM released in period' So I checked the discount rate paper again and I believe I was mistaken. The formula for the Insurance service result = Insurance service revenue +insurance service e…
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No, a motorcycle is not considered a PPA - PPAs are your own personal use vehicles like sedans, not special vehicles like snowmobiles, motorcycles etc
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Hhh it looks very cute