graham
About
- Username
- graham
- Joined
- Visits
- 3,987
- Last Active
- Roles
- Administrator
Comments
-
Yes, but it might be wise to provide a little more detail as follows: Suppose a company begins using rates on Jan 1 but observes poor loss experience and realizes by Apr 1 that the rates are too low by 5%. * In a use & file system, they can…
-
You're correct that something is wrong here. The information provided in this problem is not internally consistent. This problem is solved in the wiki at the link below and there is a comment about this discrepancy. * https://battleactsmain.ca/…
-
The best advice I can give you here is to not get hung up on the details. The term "intervention" broadly means government intervention into the private marketplace. So even if some interpretation of option 2 is not quite consistent with that meanin…
-
If you wrote that on the exam, you would get most or all of the points. Don't overthink it. This topic is of lesser importance and for topics of lesser importance they tend to accept a broader range of answers. It's clear you understand the issues, …
-
You shouldn't be asked to calculate the discount rate, at least not like in this problem. The reading on bond valuation was removed. The will probably just give you the discount rate, but if for some reason they did ask you to calculate it, note …
-
They used the formula for DPAE: * DPAE = UPR - PolLiabs(UPR) + UEComm * (see https://battleactsmain.ca/wiki6c/CIA.PrLiabs#Basic_Formulas) If you assume UEComm = 0 and rearrange to solve for PolLiabs(UPR) (which means the same thing as prem…
-
Yes, good point. There is less volatility. RSPs are complex to administer. They are also not as necessary for specialty coverages because insurance probably isn't mandatory for those like it is for driving a car.
-
For RSPs, the policy is written through individual insurers using their own policy forms and rates, and like you said, it is the insurer's choice to cede a policy to the pool. But there could be cases where an insurer doesn't want to underwrite a…
-
How does FA assign a policyholder, unable to obtain coverage, to a specific insurer/service carrier? * This is not discussed in the reading. After one is assigned, and losses are reported, is the private insurer (service carrier) only job t…
-
That was from the previous version of the Canadian BCAR reading and it was very different. The BCAR methodology changed drastically so even though the answer looks reasonable, I would base answers to future exam questions solely on the current readi…
-
If you haven't seen the forum discussion below, take a look at that first and see if it helps with your questions. That person had very similar questions. * https://battleactsmain.ca/vanillaforum/discussion/500/government-reinsurance-funding-an…
-
I forgot about that exam question. I just added a link in the wiki in this section so people could get to it easily: * https://battleactsmain.ca/wiki6c/CIA.IFRS17#Section_5:_Measurement_Approach_for_LRC I think either answer is valid but th…
-
Your calculation is correct, but like you said it can't be negative so you would just set it equal to 0 when this happens. (Another way of saying this is take the max of 0 and -1,000 as is done in the examiner's report.)
-
It's slightly more complicated but I didn't include all the details in the wiki because in the Exam 6-Canada syllabus, the knowledge statements did not mention anything specifically about "insurance revenue". The BattleCard uses the information prov…
-
I think the key statement from the source text is: * When estimating the LRC for reinsurance contracts held valued under the GMA, the ceding company would include all projected cash flows The implication here seems to be that for LRC contra…
-
Saskatchewan has optional coverages governed by open competition (like fire and theft) but unlike for BC, a full list of these coverages is not given. Manitoba also has additional coverages governed by open competition but these additional covera…
-
Either answer should be acceptable. This is an example of where the source text (written in 2016) is outdated because regulations have changed. The CAS policy is to accept either the answer from the official source text or the current correct answer.
-
Your solution is algebraically equivalent to the solution given in the examiner's report. If you got a slightly different answer, it's just rounding. I think the reason for the way it was done in the examiner's report was to explicitly show all t…
-
That's just for BC and I thought that was kind of an unfair exam question. The optional coverages for BC are: * extended 3rd party liability limits * excess underinsured motorist protection * collision * comprehensive * specified perils …
-
A vehicle classification system describes the vehicle and would have categories like: * 4-door or 2-door * sports car, antique, family sedan, SUV,... * has air bags, anti-lock brakes,... A risk classification system is broader. It would i…
-
The main difference is that File and Use does not require as much documentation as either Prior Approval or Expedited Approval. I added this to BattleCard 18 in the Full BattleQuiz for FSCO.PPA. You can get to it here: * https://battleactsmain.…
-
Unfortunately, these definitions are not made clear in any of the syllabus readings (as far as I could tell) but there was a forum discussion about it from 2020 here: * https://battleactsmain.ca/vanillaforum/discussion/367/satisfactory-financia…
-
Either party can propose a commutation. It can also be written into the reinsurance contract after a specified period of time.
-
I'm going to link to your post from the wiki. Thanks for asking the question!
-
Yes, that's right. I've corrected it. Thanks for letting me know.
-
If a company wants to withdraw a particular line of business from the market, they can cede or offload 100% of their business to a reinsurer so their net reserves would go to 0 immediately. There would be a cost to purchase the reinsurance policy bu…
-
Great!
-
The recommendation in the current FCT reading is for the forecast period to be 3-5 years, but there is no specific minimum. It seems the final decision is left up to the actuary. The ORSA reading does not address the forecast period as far as I c…
-
The way I understand this is to step back for a moment and consider the following general taxation concept that applies to any sort of a business enterprise: * If a business suffers losses, these losses are deducted from taxable income. Losses …
-
Yes, but it's very well hidden in the sample annual statement. Here's the upper left corner of the exhibit on page 60.41: If you notice the little "*" symbol next to the UCAE label and then look at the bottom of the exhibit, you'll see: …