VadimSem
About
- Username
- VadimSem
- Joined
- Visits
- 141
- Last Active
- Roles
- Member
Comments
-
From the excel practice problems section:
-
I think the issue is in original MCT Sample question 3. It asks for deduction from capital available but calculates deduction from capital required in the answer key.
-
Thank you!
-
I saw it the same way as you two.
-
Thank you!
-
Is there a simple rationale behind the AAD adjustment calculation? It seems strange to use the 0.5 year yield to discount for 0.5-(0.5-0.33)=0.33 years. Would we technically need to have a 0.33 year yield but this is just an approximation to make…
-
In Sample-17, what I assumed is that DAC is already amortized so basically the 7500 is the remaining DAC for the unearned portion of the policy. Then everything lines up. Otherwise yeah on the last day of the policy LRC excl. LC would be -7500 wh…
-
Where can I find the link to the appendices 6 and 7? Can't find appendices 6 and 7 on the CIA website but 8 and 9 are there. Thanks!
-
Thank you! I know this is an overly simple example but the breakdown above is very helpful. @Staff-T1 thank you as well for all the responses!
-
Thank you!
-
How can somebody essentially gifting 500 to me be a 1000 profit, logically speaking? I understand that I book a 500 liability but wouldn't I also book a 500 asset (the cash) so net expectation would be 0 but then realize a 500 profit by releasing…
-
Thanks!
-
1000 0 Not sure Could you, please, lay out what the FCF, LRC using PAA, and profit are in the following simplified scenario and I will fill in the rest in my brain. Somebody lends me 500 dollars for a year and I expect not to pay them back. …
-
Could I suggest marking the battle quiz 3 cards as outdated as well, thanks!
-
Because all that happened is that somebody gave me 500 and never asked for it back, making profit 500. Could you lay out how this simplified situation would look like in terms of FCF, LRC using PAA, and profit? Thanks!
-
Thanks!
-
Aah thanks for the insight that makes sense! My biggest issue was with sample 1 but I believe in sample 2 they still actually missed the invested assets in the investment yield formula (and not the ROA formula): Thanks!
-
Thanks, that helps I feel like I'm almost there. Where I'm struggling is that I don't understand why the 580 liability is not already taken into account in the FCF. Lets say in the simplified 500 debt forgiveness example, in my mind: * FCF =…
-
Thanks! Also might be a little nit picky (I apologize!) but I think this version of the formula used in the Fall 2017 Q25 examiners report is more accurate and makes more sense. Let me know any thoughts. Basically you don't just subtract c…
-
Can you take another look at this, please? I feel there are errors in both sample answers in the examiner reports. From my understanding: Sample answer 1: As dogechow points out, they assume no tax since NI is calculated here and not given…
-
Nevermind - sorry overlooked the no capital gains and no income from subs included in the question!
-
Hi, I came across this same question and found this sample from the Fall 2012 exam question 21b) where it was asked to calculate insurance return on NEP. The basis of the answer was using the following formula: Which version of the formula sh…
-
Could you expand on the last part? "The total increase in assets or profit is the sum of both". Why is the "profit" in column 26 the sum of the "true profit" and the liability I'm holding for future claims? I'm considering just forgetting about t…
-
Thanks!
-
@Staff-T1 , @graham , any comment on the above would be appreciated, thanks!
-
@Staff-T1, @graham, please let me know any thoughts on the above. Thanks!
-
I'm having some trouble grasping the intuition behind group A in the wiki example of this topic: My interpretation of givens: FCF = -4165 -> means when we actually project cash flows, we have 4K more inflows than outflows PAA …
-
I'm thrown off when it mentions 'cash flows' in the boundary. For example, if I have a 1 year policy and I have a claim in the last month, I'm likely going to receive the claim payment past my policy term ie. cash flow is happening after the poli…
-
Thanks for the insight!
-
Positive as in +3000 rather than -3000, not that it is good for the company. Take your example but without the expected decrease for simplicity: Beginning unpaid = 50000 Expected ending unpaid = 50000 Actual ending unpaid = 53000 Deficien…