chrisboersma
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The primary motivation for a reinsurer to commute is to bring certainty to its results; however, there are other benefits to the reinsurer associated with commutation, including capital relief and savings in claims adjusting and administrative costs…
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its like where's waldo. Thanks for digging to find that.
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Level 2 score is correct. I'm reviewing level 3. Optional Setting A: 0 - 10 Optional Setting B: All, All Optional Setting C: Higher & Lower probability Output = 33 battlecards. Average score is around 9.998 and max lapse = 2. Displ…
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Thanks, very helpful
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This doesn't answer your question?: This is a reasonable result when you consider that the reinsurer is clearly accepting this same parameter risk when entering into the contract. Ignoring parameter risk ignores a risk the reinsurer ha…
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[Note: this knowledge is not part of the exam, but context helps me memorize things] The Canada Revenue Agency's position is that the expression "substantially all" used in the Income Tax Act means 90% or more. We are evaluating: …
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It's Losses & LAE and Losses Paid. It's a little confusing to see Incurred +LAE included with Paid Losses. The amounts are a little bit of confusion because it seems to suggest LAE will be 3x as large as losses. But, alas, CAS exam questions a…
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That question was a straight copy from the text: An extreme example would be a single doctor paying $1M for a $1M x $5M medical malpractice treaty with a $2M aggregate limit. This contract passes the established criteria for the risk transfer …
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I don't understand why a 1% quota-share risk wouldn't qualify for reinsurance accounting. The share of premium (and claims) doesn't affect the overall agreement in anyway. You could ceded 1% of $100B of premium would still be risky to a smaller re…
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See Spring 2018 Q14
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The median may be a reasonable approximation of the mean accident date. The median accident date is calculated using simple trigonometry assuming premiums and losses are uniformly distributed and the sides of the UPR triangle are set equal to 1.00. …
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It's arbitrary: As detailed in Part XIV of Canadian Income Tax Regulations, the income tax deduction in respect of an insurer’s claim liabilities is equal to 95% of the lesser of the reported reserve and claim liability. Regulation XIV…
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CSOP 1120 Definitions: Claim liabilities are the portion of insurance contract liabilities in respect of claims incurred on or before the calculation date. In combination with CIA: Discounting 3.1 Cash Flow Associated with Cla…
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I believe this content is covered under Online Course 1. Assumed Premiums: Premiums received or receivable for coverage provided under a reinsurance agreement. Ceded Premiums: Premiums paid or payable by the captive to another insurer for rein…
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Each insurer is responsible for paying out a certain amount in claims—known as its deductible—before receiving federal coverage. An insurer’s deductible is proportionate to its size, equaling 20% of an insurer’s annual direct earned premiums for the…
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the deduction is actually the increases in GWP ($40,000) not the ceded amount ($50,000) Prior year GWP = 135,000+20,000-40,000
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This is on page A2-5 of McDonald, which is included in the syllabus (A2-1 to A2-9). The syllabus also states: Candidates are responsible for all cases cited in this text. I assume this was accidentally dropped from that section.
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Page 8 of premium liabilities: Discounting for Time Value of Money....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 consi…
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Despite the recent amendments, it had been known for some time that the arrangement was unsustainable and would not be renewed. Does anyone have the pre-2015 reading anywhere I'd love to compare what IBC said then vs. now (for entertainment …
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Same article: When they refer to New Brunswick , why do they not call it "Prior Approval with Deemer provision". NBIB has authority to notify insurer within 30 days time frame that it intends to investigate Similarly for Newfoundlan…
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PresentValue.Claims.(2016) / PV.Earned Premiums(2016) earning interest against UEP is like earning interest on a PAYABLE - it's free money. earning interest against UNPAID CLAIMS is like earning interest on a PAYABLE - it's free money. both of …
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I think it was just a little bit a simplified situation to make an easy problem. They appear to want you to assume delta(amortization) = 0 (Or more specifically: that the amortized value is also the booked purchase price). For a 10-year bond this …
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Thanks!