Staff-T1
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I'm not sure what you mean by "JCCV" are promoting settlement without trial? JCCV is not an entity but just an acronym for tort reform?
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A tax break means relieving an obligation for an individual to pay tax. If you are providing compensation on a gross basis, this means they essentially get the "full" amount (i.e. tax break) whereas providing compensation on a net basis essentially …
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Which appendix are you referring to?
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No you'd probably not get full marks because the source makes a pretty clear distinction. I'd say the easiest way to think of it is value is what you receive, opportunity is what you pay
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yup that's what the battlecard says
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It just means the insurer proposes a commutation. In a commutation, the insurer always takes back the claim. See this discussion: https://www.battleactsmain.ca/vanillaforum/discussion/719/spring-2017-18a#latest
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The source defines it as: "The expected loss ratio for MCT is a best estimate of the future ELR that is applied to the estimated revenue for the remaining coverage period." This looks like what is used in step 2 yes
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Well discounting (3) reduces your liability so it would be the opposite sign of (2). You are defining your FCF as > 0 if the contract is profitable. Thus, It will give you a LC if your FCF is below your LRC excluding Loss component
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For your first question - It's defined as a Coverage Unit in the reporting period in the source. Graham just defines it as beginning CU so it ties into the ending CU. There is no such thing as a CU Beginning balance in the material As to your sec…
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According to the AIRB website: This rule ensures that all Alberta drivers can obtain mandatory automobile insurance coverage (third party liability and accident benefits); insurers cannot refuse this coverage to any new applicant or existing policy…
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It's battle card 26 btw. I do not think this is applicable to the LRC because the LRC FCF needs to be calculated on a group of contracts basis. We need a CSM or LC under the GMM method for LRC where this is not needed for the LIC. CSM and LC are don…
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I think it's because they mentioned Calendar Year payment pattern and not Accident Year payment pattern
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After calculating their initial BCAR score, A.M. best does a sensitivity analysis to: * Assess capital required to support future business. How will the BCAR score change due to changes in the business plan * Assess impact of a pro-forma trans…
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@graham maybe we can clarify in the Battle Cards?
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This battle card is referring specifically to reserve capital factors. The source only considers reserve and premium capital factors so there are no business or cat risk factors. For premium factors, this is obtained from industry probability distri…
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I feel it should be loans to poor debtors*. Thoughts @graham ?
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Kind of means that the government provides assistance to homeowners who would have to pay exorbitant premiums because their houses are in a flood plain. Could be done using vouchers, tax rebates, etc.
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Where in the source are you seeing this?
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You are right. FCF = Future Cash in-flows - Future Cash out-flows + effect of discounting - RA LRC = FCF + CSM @graham can you confirm?
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It's not stated specifically in the source but given you would be under supervision by OSFI should you go under 150% for your BAAT, I would guess it is the former. Technically, MCT doesn't necessarily have to be above ICT for a company to operate
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Yes that is all you need to know
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Well even if you don't sue, your insurer will try to get recoveries from the at-fault driver so it will still exist then
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Your interpretation is correct. I guess it could technically limit risk transfer if there is a pre-baked expectation of large profit sharing. I think the CAS is being lenient in that it is technically under the limitations of risk transfer section a…
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Taking 2016 as an example. We would like to calculate the cost of capital for that year. Thus we need to calculate the amount of capital required for 2016 (derived from the payment remaining at the beginning of the year). If we multiply by payment r…
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Claims are fully paid out after 3 years according to the payment pattern. As such the last payment will be made 3 years after the AY begins. That would be Dec 31 2016 (AY beings on Jan 1 2014)
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Oh it's the P&C annual return. Sorry I call it the PC1 at work
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Isn't net income provided in the question? Why would you need to calculate it?
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Hi, * I think so, yes because you'd still have maybe around 25% of premium to earn as a risk attaching policy * I think it is safe to assume it is loss occurring in an exam unless it is explicitly stated As you mentioned later in the question,…
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The material doesn't explicitly say how the losses are allocated for FARM. However, looking at bullet point 1 and 2 on page 4 it would seem like it is being allocated based on an insurer's Auto book excluding RSP risks
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For the first point: I do not think it is inconsistent here. In a way, the more risks you cede the lower your non-ceded exposures. That's my way of interpreting what the paper is trying to say. And Graham needs to tie this into the calculation ques…