graham
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I see what you're doing and it's very reasonable. I would call that a "mathematician's" approach. After you calculate the deduction, you substitute it back into the formulas to see if the limits are now satisfied. If not, then iterate until the Cate…
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Thx @chrisboersma. This formula is also discussed in the CIA.MfAD wiki article here: * https://battleactsmain.ca/wiki6c/CIA.MfAD#Loss_Ratios:Discounted.26_Undiscounted It's just a straight application of the formula.
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Practice exam for 2019.Fall 2b * I admit that I was trying to trick you here. You are correct that employment cannot be used but the question didn't specifically say that employment was used directly. The question asked if the rate decrease …
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I agree with @chrisboersma and I would ignore sample answer 3. The exam question is obviously setting you up to use Glynn v Scottish Union as the precedent. (If I were the grader, I would not have given credit for the Somersall v. Scottish & Yor…
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I raised this question on Oct 12, 2017. My question to the CAS committee: * Regarding the reading KPMG Regulatory Oversight, the relevant pages changed from the prior to the current syllabus. The prior syllabus lists pp. 14-31, and current s…
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Lol! Thx. Hint added to wiki.
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S19Q4d * I do not think you would get credit for your answer because it wasn't specific to UBI. The items you listed would be included in any filing. The question wanted you to list the extra items that a UBI filing requires. You may have recei…
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Sorry, I completely messed up that part of the answer. I agree that the 15% should be multiplied by the quota-share % of 90%. I've decided now to change a number in the question. The severity is now 1,500 (instead of 15,000) so the ERD test fails…
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Very thorough. Thanks.
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IMPORTANT UPDATE: In the syllabus reading: * Canadian Institute of Actuaries,” Educational Note: Premium Liabilities,” July 2016. Candidates are responsible for the Excel illustrations attached to the Educational Note. there is an incons…
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It's a little convoluted how it's explained in Odomirok and I had to go back and think through it. The subsection "Income Statement" in Odomirok Chapter 28 states: * Incurred claims, claims adjustment expenses, acquisition expenses, general exp…
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Hey @jptardif2 and @Zaharops , In the practice exam problem Q17, EPR is already part of financial resources (CREC-it) so it is already being subtracted from ERC when you subtract the 55,000 for financial resources. The difference in 2019.Spring Q…
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You know, I just went back and redid that question, and I don't think I stated it very well. Here's how I solved it just now: * ERD * = F x S / premium * = 10% x 15,000 / (1,500,000/1,500) * = 10% x 15,000 / 10,000 * = 15% This is great…
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Yes, the PDR would go on the liability side of the balance sheet. The income statement wouldn't change immediately, rather it would change gradually as the premium is earned and the loss flows into U/W income.
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That makes sense. I've moved them and the changes will take effect on the next upload. That will be within about a week after the 2019.Fall exam next Tuesday Oct 29. Thanks for pointing that out.
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Yes, thanks! I'll upload the correction tomorrow.
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Both formulas are correct, but it isn't obvious and I wish the source text had explained it better. The reason the page 10 formula is true is that only 1 of DPAE and PDR can be non-zero at the same time. This is explained below. As you wrote abov…
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I completely understand your struggles with this reading. Let me try to ease your anxiety: * You are not alone in feeling like this. This reading has a lot of details and it is very difficult to sort it all out. * I've noticed that for new rea…
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Nice! I made a small change then modified the BattleCard. Thx!
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It's always good to rephrase in your own words. I see you used "success" in place of "accepted by the public". I suppose if it's successful then it would probably be accepted by the public - that might be part of the definition of success. As you…
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Because if they asked the questions in a "normal" way and otherwise created a reasonable exam then too many people would pass. And I'm not trying to be funny. Whether it's conscious on their part or not, that's what it comes down to - creating a bar…
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I've always found the wording of the "but for" test confusing so here's how I think about the case in my own words: * The whole thing was Hanke's fault because he didn't pay close enough attention to which tank he was filling. * The accident W…
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I did some further checking and it appears that the U.K. pool is indeed elective. If the question comes up on the exam, you should notify the CAS of a defective quesiton right after the exam. I've made a note in the wiki and have changed the 4th Bat…
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First, thanks for bringing this question to my attention. The answer to part (b), while correct, is mislabeled in the examiner's report. The years for which they calculated the investment income are not 2013, 2014. The years they actually calculated…
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That is a very good idea. I've had it in the back of my mind to do something like that. The MSA.Ratios "123" problem was one of the first ones I did so I kept it pretty simple. I will definitely make the enhancements you suggest but I'm not sure I'l…
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Great, thx!! I added it to the wiki here: * https://battleactsmain.ca/wiki6c/CIA.Models#New_.28or_substantially_changed.29_Model
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The exam question 2015.Fall Q13c is: * Describe 2 approaches to account for the time value in money when evaluating the runoff of claim liabilities. The answer is directly from the CIA.Runoff reading at the top of page 4. Sample answer 1 is…
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About 2015.Spring Q23d: * This material was removed from the syllabus in 2017 * See footnote 2 in the BattleTable for OSFI.MCT * Just so you know, the reason they didn't include in the 0.625 in the MCT calculation in part (e) is that "Capital…
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There are 2 differences between the undiscounted and discounted formula for excess(deficiency) ratio. In the undiscounted ratio: * ii is not included in the numerator * do not use APV (instead, use case reserves + undiscounted IBNR) Then t…
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You are correct! See footnote 4 for 2018.Spring Q14 below the OSFI.MCT BattleTable at this link: * https://battleactsmain.ca/wiki6c/OSFI.MCT#BattleTable