cornedov
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I also noticed that risk adjustment only applies to the claims and not any premium or expense. Is this because all risk associated with premium and expenses is assumed to be financial risk (ex: Credit of inflation) and so it is not included in risk …
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How do we know the remaining premium is received midway through the first quarter? If this was an exam question would it be fair to assume everything from premium and loss payments occurs mid year? That way we dont need to break 2024 into quarters. …
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I think you would insure a set # of acres. Say I have 10 acres of crop that are insured at a pre-determined price of 5$ per acre. There would be a deductible say of 2 acres. In the event of an insured loss the payout is MAX(# acres affected - deduct…
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You are right they are inconsistent I noticed this too. The ratios in the MSA legend are definitely different. Investment Yield as you mentioned is Investment Return / Avg(Invested Assets) which is different from the CCIR version in a few ways: …
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Given there is no content in the wiki other than the screenshot I figured I would post this to help others study this exhibit. Its possible ive made some errors so feel free to highlight if thats the case
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Hi @graham , I was taking a look at that past exam question you linked above and two thinks popped out to me. 1) How do we know Capital Available given is post deductions? One common error in the examiners report was making a deduction to Capital…
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For file and use can we begin using rates immediately once they are filed? Or do we need to wait for a certain window to pass (30-90 days) in which the regulators can voice any objections?
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I just wanted to point out that these 6 stabilizing methods are not all for probable yields. There are two sections in the source where they discuss stabilizing methods, one is for premium rates and the other is for probable yields. Methods used …
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In a question like this would the CAS have accepted capping, smoothing, cushioning etc...?
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I believe they are the same, the latter simply assumes all investment income is attributable to U/W which is really the only assumption we can make unless the question explicitly states a split.
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How are we supposed to study this screenshot? Would you recommend we just memorize these formulas? Also, I don’t really see how it relates to the MSA.Ratios paper. Is there a relationship or is this a standalone paper?
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If we didnt have a residual market would RSPs work? Basically insurers would chose not to write bad risks as there is no consequence to turning them down and there would be no need for an RSP. However since there is a residual market in place whe…
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@Staff-T1, by previous post do you mean your comment 2 comments ago? (If not, is it possible to link the post you are referring to) If so, aren't both RSP and FARM participation ratios calculated using an insurers auto book excluding RSPs? In tha…
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I see this helps clarify things. To add on, I see one particular sentence from the source which makes somewhat of a distinction is: "PACICC is also entitled to first priority against amounts received by the insured from third parties with respec…
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What’s the difference between liquidation of an insolvent insurer and third party recoveries? My understanding is that PACICC maximum aggregate assessment is: Max Assessment = Advances to Policyholders - Third Party Recoveries & Liqui…
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In the original paper, as AnLaPe noted, the limit was per occurance. In the above screenshot it looks like the limit now applies per policy? Does this mean we would aggregate claims in applying the limit now? Or am I interpreting this wrong and we s…
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Hey @graham it looks like PACICC has once again updated their limits.
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Do you see this as a fair argument. It doesn't relate to the IFRS 17 AA paper that the solution refers to: In jurisdictions where credit score is permitted as a risk classification element that any increase in claim costs due to low credit score …
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From what I can see both wikis refer to the same source article which was published in 2022, consistent with the current 6c syllabus. Is there really a difference in the material covered by the two? The reason I am asking is because I actually…
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If you look at the formula for Operational Risk it is: Min[0.3(I+C+M) , 0.085(I+C+M) + ..... (additional items that are not relevant to your question)] I = MCT Insurance Risk C = MCT Credit Risk M = MCT Market Risk By nature of the for…
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This following is from the duration source: "If insurance contracts in a group have a significant financing component, then the carrying amount of the LRC (or ARC) is adjusted to reflect the time value of money and the effect of financial risk …
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How come we dont amortize the 7500 of DAC over the life of the contract. At initial recognition PAA LRC would be Prem Recieved - DAC which is 55000-7500 = 47500. Insurance revenue of 50K is earned over the period and so we reduce LRC excl LC by 50K …
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For question B what is a trust claim? I’m having trouble understanding why it relates to the collateral source rule?
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Could you expand on the 3rd item on this list (considers Economic Impact on Canada). Is this saying that insurance regulation is a way to consider and control for the broader economic impact of the insurance industry on Canada. If there was no in…
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I am a bit confused by the above response. I thought the way life insurance worked is that the insurer agrees to pay a preset amount if a certain event (death) occurs. From my understanding the payout is determined in advance. Is there something …
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Below is an excerpt I found online that talks about the requirements of the materially contributes test: First, it must be impossible for the plaintiff to prove that the defendant’s negligence caused the plaintiff’s injury using the “but for” tes…
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To add to sidkiriyas comment if allocations of reinsurance premiums is an expense wouldnt we expect it to be a different sign than recoveries which are an inflow?
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In Sansalone vs Wawanesa it seems as if there was a minority ruling that the action was intentional but injury was not as the defendant had an invalid belief of consent. The conclusions as that the insurer has a duty to defend but not idemnify. M…
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Technically under pre-IFRS17 practice the discount rate on liabilities was tied much more closely to the assets held by the company and thus the investment income. Under IFRS 17 now that the reference portfolio of assets has no direct connection to …
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I think it is more intuitive when you write it this way: The calculation has 2 components: (1) discounted unpaid at time t-1 (2) discount unpaid at time t + paid claims at time t We want to bring (2) back to time t-1 to put everything on…