graham
About
- Username
- graham
- Joined
- Visits
- 3,987
- Last Active
- Roles
- Administrator
Comments
-
Yes, that's an important difference. I have corrected the wiki article, and a tweet will go out today that can be seen on the Main Page after you login. Thank you very much for letting me know.
-
Yes, general damages and non-pecuniary damages (also called non-monetary damages) mean the same thing. Examples of non-pecuniary damages are: pain and suffering, loss of companionship, physical disfigurement, mental anguish, and a general loss of en…
-
That's from a reading that's no longer on the syllabus. If you have to calculate the discount rate based on bonds, they should either tell you whether to use book or market value, but more likely they will give you only one or the other so you would…
-
The examiner's report accepted a wide range of answers to this question. The qualifications and expectations seem to be considered the same thing, at least on 2018.Fall Q30. But for 2019.Spring Q25, they were very lenient in the grading. They acc…
-
Yup, getting to sleep early and being smart on exam day is an excellent exam-taking strategy!
-
Yes, the formula for investment yield uses Total Investments.
-
Yes, they asked the question in a strange way. When you take your exam, even if you don't quite understand the wording, remember these key points: * financial flexibility: tolerance is HIGHER if the company is willing & able to replace capi…
-
The sample answer stated that tornados are less frequent than earthquakes, but that may not always be true. It would depend on the geographic location. The candidate who provided that sample answer simply surmised that as a way to explain the scenar…
-
The final A.M. Best ratings look like aaa, aa+, aa, and so on, but this is covered in the appendix of the source text which is not on the syllabus. The first step is the BCAR assessment which is according to the scale: strongest, very strong, str…
-
This is stated in the reading without explanation so it isn't something you would have to know for the exam.
-
The unadjusted capital from the balance sheet doesn't account for everything that's important in evaluating a company's capital. For example, the unadjusted capital would not include off-balance sheet losses, but these losses are important because t…
-
Yes, that's right (non-pecuniary damages.)
-
I provided a detailed solution to this problem in the wiki at the link below because I found the examiner's report a little unclear. See if that clears things up. I think they meant APV not AAP. And the case reserves are given as explained in my sol…
-
I think Citizen's vs Parsons demonstrates the point just as well as the Insurance Reference Case. I can't say for sure what the graders would accept but it seems perfectly reasonable to me. I was a little surprised that the second sample answer didn…
-
If I understand your question, you're asking about how the MCT calculation for CapReq(unpaid claims) relates to the MfAD for unpaid claims? These calculations are not directly related to each other. In other words, the MCT calculation is separate…
-
You're absolutely right - it isn't clear from the reading and it isn't very clear from the examiner's reports either. I find it helpful to keep standard examples in mind for these types of questions. * efficient? The best example is public a…
-
The effect of "late-reported claims" on the original reserve analysis might be similar to effect of "missing claims" because in both cases there was a group of claims missing form the data the actuary used in the analysis. Also, the final action is …
-
Unfortunately you can't really tell. It's hard to redo the old DCAT problems using the new FCT criteria because the some of the information you need is different. For example, this exam problem: * does not tell you the internal capital target f…
-
Hi Wilson, Sorry, I should have explained those abbreviations in the BattleCard. * OAP 1 stands for Ontario Auto Policy 1 and it is the standard policy form used for everyone who has a PPA (Private Passenger Auto) policy in Ontario * FA sta…
-
First question: * Whether you multiply by 0.85 (to account for the fact that in Ontario, there is an 85% limit on the loss ceded per policy) depends on how the data is provided. In this problem, it appears that the ceded losses are what was act…
-
Question 6: Here's a direct quote from the source text: * The data required to run earthquake models goes beyond that traditionally used to rate insurance policies. Improving data consistency, accuracy and completeness is one area where an i…
-
You're welcome!
-
Question 3: * The best source for what the graders are looking for in terms of roles of different stakeholders in agricultural insurance is in the examiner's reports for when this question has been asked on past exams. You can get that informat…
-
Ok, I see. There isn't really a "correct" answer. These principles (shield the taxpayer, avoid cross-subsidization) are both valid pricing principles on their own, but when you actually design a flood insurance program, some of these individual prin…
-
Note: My answer looks long and complicated but that's only because I wrote out everything in detail. It all boils down to recalculating the equity risk component of market risk (because of the decrease in stock value) and feeding that back into the …
-
Here's a web page from IBC that talks about public versus private auto insurance: * ibc.ca/ns/insurance-101/public-versus-private-auto-insurance Basically, public means it's a non-profit where the employees (who write policies and handle cl…
-
All this new IFRS-17 material is probably unfamiliar to most Canadian actuaries because it is still in the process of being implemented. That will change over the coming years as companies develop expertise in dealing with IFRS-17. But back to your …
-
Question 1: Subsidies * Can you cite the specific source of this statement? That would help me provide a better answer if I know the context. Question 2: Govern vs. Administer * The government sets the rules (governs) and the insurance…
-
You have good questions, but here is some advice regarding how to prepare for an exam question on this topic: * Use the BattleTable in the ORSA reading to review the old exam questions that discuss DCAT versus ORSA. The examiner's reports indic…
-
From the Canadian Underwriter: * Auto accident benefits fraud is “a huge business,” IBC senior analyst Kate Ryan said during a presentation at Insurance Analytics Canada Summit in 2017. Ryan noted staged collisions continue to be used to defrau…