Staff-T1
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The source isn't clear on this which makes it important to understand the FCF rather than memorizing it. If: FCF = Future Cash Inflows - future cash outflows, then the contract is profitable if FCF > 0 FCF = Future Cash Outflows - future cash i…
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No its the cap for minor injuries (sprains, whiplashes, etc.) You may be getting confused with the cap on non-pecuniary damages
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Owh yes it should be CI = NI + OCI. As you said, AOCI is just to keep track of the overall CI
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There's a lot to say so I am not sure I can list out everything. Examples: * There is no possibility of a reinsurance contract being onerous * A reinsurance contract may not be PAA eligible despite the underlying contracts qualifying for PAA …
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In the text: * Accessibility: Insured services must not be precluded or impeded directly or indirectly by charges or other mechanisms. This answers your first question. * Universal: I would not agree with your argument here. Not being able to …
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Yup I would think so
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Yes, but for a 0.75 mark question generally you would like to do something in the realm of: Yes (0.25), Because (0.5). Your answer is more like: Yes (0.25), Because (0.25)
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Yes to your first question. Basically the operating target is the level that an insurer should consider taking into account the impact of future planned, foreseen and likely potential changes to its risk profile due to changes in its operations, its…
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Yes, that is always needed
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Well I think the key phrase here is "paid at inception" and not "non-directly attributable" If you pay everything at inception then it is already realized and there is nothing left to do
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Yes to both points
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Yup pretty much
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Yup for the first point and for the second FCT scenarios are an option but not the **ONLY **option
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So you can only transfer in risks for which at least one household member has < 6 years driving experience and no prior accidents and convictions. It is meant to accommodate inexperienced drivers with good experience so I guess that implicitly pu…
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I don't see how these two scenarios are inconsistent - Reverse stress testing is a deterministic method whereas percentile methods are stochastic
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Yes it's precisely because it is net that's why we need to add FutRe. It represents the cost of reinsurance not yet purchased on the unearned premium
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I would assume for example if a SIR of 1M is breached for a claim worth 1.2M. The insurer would be responsible for 0.2M. But if the claim ultimately settles for 0.8M, then there would be 0.2M of recoverable for the insurer
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It means when the risk distribution can easily be fit to some prior assumed distribution (i.e. gamma, tweedie, etc) As an example of a hard to fit distribution, you would not be able to do stochastic modelling on an XOL line of business which has no…
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Off the top of my head I don't think you can find future reinsurance cost and the prospective ELR in the PC1
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I think what the paper is trying to say is that the consequence of making a mistake in a model that is used more frequently is more severe vs a model that is rarely in use
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Compensation fund: * Contributors are all active insurers in the jurisdiction * The fund was established a long time ago through a one-off levy on insurers and it has been maintained since. There are no regular contributions to this fund right…
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So there's a slight nuance to this question here and what I think the CAS is trying to say/ 2017F Q23: The event is something which causes the premium volume to increase. For example, rapidly growing the business (i) causes the premium volume to in…
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Hi, To be honest, for the legal cases it's all mainly lawyer speak so you just have to memorize it as is ~ There's no value added in trying to understand why nor will examiners ever ask this specific question in an exam
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No it's not. Example: Your taxable income this year is 100K and you are taxed 20% or 20K. * Tax credit of 1000: Total Tax paid= 20K - 1K = 19K * Tax deduction of 1000: Total Taxable Income= 100K - 1K, Total Tax paid: 99K*0.2 = 19.8K
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Hi, I was reading the latest BCAR while trying to find where it states in the source that the BCAR would test a 2nd non-concurrent event and came up with a blank. I think the syllabus has changed? @graham thoughts? The latest BCAR is dated Augus…
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Right now we are at Dec 31, 2013: * AY 2012 is currently 24 months old with 30% of payments remaining (1 - Cumulative paid @ 24 months) * AY 2013 is currently 12 months old with 50% of payments remaining (1 - Cumulative paid @ 12 months) T…
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AOCI stands for accumulated other comprehensive income while OCI stands for other comprehensive income
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No, Tax deduction of $50: NI - $50 Taxable amount of $50: NI + $50 Not tax deductible means you can't subtract the item from your taxable income whereas not taxable means it doesn't get added to your taxable income. a) individual contribution …
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Both conditions have to be satisfied in order to not discount your LIC - Practically nobody does this in practice though
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In the example, it is stated that non-directly attributable acquisition expenses are paid at inception. Carrying amounts are 0 at the beginning of each period because we are calculating LRC on a group of contracts basis and not at a portfolio level…