chrisboersma
About
- Username
- chrisboersma
- Joined
- Visits
- 1,241
- Last Active
- Roles
- Member
Comments
-
KPMG, “Research Report – Best Practices for Actuarial Involvement in the Regulatory Oversight of Property and Casualty Insurance Rates,” December 2012, pp. 21-31. Review the syllabus. Please buy the study kit (you need it!). It's also a s…
-
It's also worth pointing out the study material do not have the current filing guidelines in KPMG Regulatory Oversight for Ontario [2012] (-10% to 0%). But this range should be an "acceptable" answer as it is what we are asked to study/memorize. I…
-
There was an interesting question in the forum regarding a comparison between the simplified filing rules and the regular filing rules: * simplified rules permit territorial changes within (-15%, 5%) * regular filing rules permit terri…
-
KPMG.RegOv
-
I don't see how this answered what is "surplus sensitivity" and how do we go about calculating it? * Not sure the relevance of the model choice: deterministic, or stochastic, or a combination. It's not specified in the question which model is …
-
The BattleCard should be reformatted to include foreign exchange risk as a variable the user must calculate as presented in 5.2.1 (just assets - no liabilities) and allow the user to solve for ?. The equation on the bottom of the page where it stat…
-
Thanks that makes sense. Not sure why the text didn't say "ENID loading" when they provided the proposed definition. Can this be clarified in IFA.SolvencyII? https://www.battleactsmain.ca/wiki6c/IFA.Solvency2
-
With regards to the time value of money, the cash flows other than losses and loss adjustment expenses (i.e., reinsurance costs and maintenance expenses) would also be considered but are not generally material to the calculation of the premium liabi…
-
Yes, anything that costs money related to unearned premiums: APV.unearned.claims + maintenance of unearned premiums + reinsurance costs for unearned premium Problem for this is how do you calculate: APV.unearned.claims? APV.unearned.cla…
-
undiscounted is equivalent to no adjustments for present value or interest discounted is equivalent to adjustments for (actuarial) present value and interest Claims discounted = Incurred = APV + Paid - Interest undiscounted = Undiscounted.Paid…
-
This is an interesting question. And the CAS interpreted the bullet points very literally here. The text is quite vague and broad with their interpretation. You have to carefully read through ALL the examples to get a sense of how the writers wan…
-
It appears as though you are correct.... Strange no one caught this sooner. If you're already above 30% of NWP - then change in yield -- > change in margin if you're below 30% of NWP (floor) then change in yield -- > no change in margin (…
-
hmm... you are correct. Although one should be careful to include a reference to economic losses not caused by accident or medical malpractice.
-
I think Graham is referring to the line Save in exceptional circumstances found in the original rulings from 1978; but I could be mistaken. In the context of Young V. Bella it was merely noted as a negligence case outside the personal injury contex…
-
4.3.3.2. Deduction from capital available Amounts receivable and recoverable from an unregistered reinsurer, as reported on the balance sheet, are deducted from capital available to the extent that they are not covered by amounts payable to th…
-
Remember the accountants are responsible for the Accounting Statement.... Also, you must make a distinction between LIABILITIES and INCOME. Claim Liabilities measure the amount of expected future expenditures on claims already occurred. Claims …
-
Examples of Reasonably Self-Evident from AAA: Straight Quota Share: no risk-limiting features other than a loss ratio cap with negligible effect on the economics of the transaction. Single Year Property Catastrophe little or no risk l…
-
Basic Reinsurance Accounting – Selected Topics [Blanchard & Klann] See Unearned Premiums: Net, Gross, Ceded. Spoiler alert = Net = Gross - Ceded . OR Net Unearned Premiums = Gross Unearned Premiums - Ceded Unearned Premiums [So unearned pr…
-
I'm going to assume the MCT document has changed since 2014... Regardless this question is "OUTDATED". This is why you're using BattleActs to study (as opposed to reviewing the exams yourself) as it excludes any dated questions like these. I don'…
-
Yes, you're [mostly] right. Hopefully Graham will fix soon... ERD = Sum of... MAX(-profit,0) x p(-profit) Since p(-profit) =6% and MAX(-profit,0) = 1000 - 150 = 850. The expected losses = 850 x 6% or 51. Premium = $150. So ERD = 34%
-
United States (Crisci v. Security Insurance of New Haven) amicus curiae argues that, whenever an insurer received an offer to settle within the policy limits and reject it, the insurer should be liable in every case for the amount of any final…
-
They were offered $4m to settle. Insurer risked the insured's money and went to court. Lost @ $7m. Insurer paid $5m and customer owed/paid $2m customer sues for amount they owe/paid: $2m as the insurer was negligent in settling the claim. N…
-
I think the question says "decrease" in unearned. Double negative (trick question). eg. you ADD the decrease and SUBTRACT the increase in unearned premiums. plus (-2000) or minus 2000
-
Yes I realize they call it a Minimum Capital Test and we remember it starts at 150% (supervisory), but the guideline is a little more detailed if you read it explicitly. By the time you hit minimum OFSI will mean business..... First recall th…
-
* Damages for non-pecuniary losses are not really "compensatory" as no money can provide true restitution. Accordingly, such damages should be viewed as simply providing extra money to make life more endurable I don't believe there's any…
-
The question is asking for UW Income Revenue = Earned Premiums Accounting Year Loss Cost = Paid + Delta(APV) + Investment Income (@0% so $0) UW Income = Revenue - Cost. What is an 'Income Statement'? An income statement is a financial …
-
beginning unearned premium = expected premium we will earn this year written premium = actual premium written (some is for next year) ending unearned premium = expected premium we will earn next year [deducted from written premium] Note: this l…
-
The exam likes to copy the language from the source material as close as possible. Here it is clear that the risk is referring to APV. So Net Claims Liabilities = Gross APV - Ceded APV 4.2.1. Margin for unpaid claims The margin for unpaid…
-
Company has been in business for two years and has unpaid estimates for 2-years: 2012 Net Unpaid @ 24 mo = 47,500 2013 Net Unpaid @ 12 mo. = 64,031 If there was data for 2011 @ 36 mo. it would be paid @ 100% in the next year. Payment pattern…
-
Q20A is outdated includes references to FA. Question would likely be defective in current exam as "contingent commission" isn't clear whether they are referring to ceded contingent commission or gross contingent commission. In the context it makes…