Staff-T1
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As per the source: The SPF9 only provides insurance coverage for rides that have been booked electronically using the TNC application. It provides no insurance coverage when passengers have street-hailed a ride
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yup that's correct
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On page 39, Financial resources only include the EPR. I think the question is talking about EQ reserves = (EPR + ERC)*1.25, but examiner report is referring to capital available not financial resources
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I don't think so. The part you are referring to (page 33) is no longer on the syllabus ~
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Yes they are interchangeable
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So in my mind, number two is the more common one. Number one is basically a footnote in a picture in one of the papers. I think FCF would be clearly defined for you in an exam and if you understand it really well I wouldn't expect any problems. But …
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Yup they are
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Suomi is right. There's no inconsistency
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Suomi is right. Same logic as to why Unearned premium is also a liability
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It's the same thing - What you are referring to is called "financial strength interactive rating" - Page 4 of the source. Tbh there is a write-up on page 18 in the source which talks about financial strength vs credit rating, but it doesn't make th…
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Yes that is correct. But, you also need to test for the difference between PAA - GMA for PAA eligible contracts (< 1 year) that are onerous too when calculating 5)
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Could you be more specific with your first question? Do you mean to ask what is the meaning of discount rate including risk margin? If so, it means the discount rate minus mfad (investment rate)
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Not to my knowledge, no
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Yup that is correct
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yup pretty much
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At least annually - Sometimes more often if circumstances call for it (change in risk appetite or risk profile)
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Yup when I reviewed it I had the answers side by side and it seemed reasonable. However, maybe taking it blind like you guys may lead to a different interpretation as the above. After all, you guys are "closer" to the actual exam material. Thoughts …
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Yeah I agree with you here. I'm not sure how it would affect the insurance industry. Thoughts @graham ?
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Hmmm personally I find the verbiage fine as is ~ I think Graham was trying to be consistent with the wiki?
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No, you'd need to discount LRC under PAA if you have a loss component. That's a good question - I think the source does not go into too much detail with regards to GMM vs PAA for LIC. I would just accept it as is for the purpose of your exam. Maybe…
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Well mandating insurance is one of the remedies. It doesn't automatically make the other remedies redundant
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A big simplification but conceptually: * LRC = Net Premium Liabilities under IFRS4 * LIC = APV UCAE under IFRS4
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Data integrity: Obtain consistent, accurate and complete data to estimate the insurer’s exposure to earthquake risk. Data verification: have processes in place to verify that their databases are accurately capturing all the data received. Tbh i…
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Less volatility in assets - It's because B has a lower duration which means it is less sensitive to changes in the interest rate Less duration mismatch - It's because the duration of assets in B is closer to the duration of liabilities Less volati…
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Whoops I saw this as question d) Tbh reading the paper again I kind of feel it's fair game. It's a 0.5 mark question so basically they are just testing if you know that if EQ reserves increases, then required capital increases just like in the MCT…
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Just to add on here: Even if they acknowledge a mistake they will not go back to change the mistake in the posted past years
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Well I think in the solution ceded and reinstatement premiums are treated as a cash expense rather than ceded premium. I personally don't think it should be included in the investment income calculation imo but if that's what the graders expect then…
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I think it's hard to tell without seeing the actual numbers broken down by category ~ Right now we are just speculating
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Yeah I think AB is already private right now. Maybe they are referring to this? https://www.cbc.ca/news/canada/edmonton/auto-insurance-alberta-panel-1.5782533
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I just realized this whole hypothetical question doesn't work as it is not PAA eligible so there's nothing much to say here since it has to go under GMM