graham
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Given that adjusting the capital available for unregistered reinsurance was a common error, it's clear that the exam question was not stated clearly. (They really should have said that the given value was net of all adjustments/deductions.) Anyway, …
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Been there! (many times)
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I think you're just missing a pair of parentheses. In your formula you have 0.5x120^2 but it should be (0.5x120)^2.
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Oh, ok. Well, I'd expect there to be some sort of broad correspondence between MCT and BCAR since both are intended to broadly measure financial health. Exploring this in depth would make a very good research project.
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That graph is quite interesting. Where did you find it?
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There are a few things here that puzzle me actually. The FIRST is that in the solution (and according to the formulas in the MCT paper) the value of EPR seems totally irrelevant to the final calculation of ER (Earthquake Reserves.) * EPR is sub…
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Everything you said makes sense. I only added this 3rd exception (negligence causing financial loss) because according to the examiner's report for 2018.Spring Question 6b, that was one of the required answers. Note that this exact question has b…
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Yes, I wrote "File & Use" but I was thinking "Use & File". I will edit that. Thanks.
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You had it almost correct. You just forgot to include the include IBNR of 1517 right underneath the UCAE of 1200 in the runoff table. Then 1517+1200=2717 which is that same as 4477-1760. (Note that in my example problems on Alphabet City I wasn't…
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Yes, that's correct. The transition date is still in the future, so you can use 15% for the upcoming exam. After that it gets more complicated for a couple of years during the transition period, then it switches to 20% for all policies. It's good…
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This is confusing because the reading that dealt with recognition and measurement of financial instruments was removed from the syllabus for 2019.Fall. That reading dealt with the bond types: * AFS (Available For Sale) * HFT (Held For Trading)…
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Hmm...that's a conceptual question as to why the formula is defined the way it is. You could probably make a case for either including it or excluding it. One possible reason for excluding it in the formula is that realized gain is a one-time ben…
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The following post was edited and corrected as indicated on 2019-09-19. In theory, you're right that the line is thin. For Prior Approval, you can't use the rates until getting approval, but for File & Use you can use the rates while waiting …
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I think when the question said other than "contents of the insurance policy" they meant it absolutely literally. So they accepted "wording of the contract" even though it is obviously part of the contents of the policy. Same for the statutory condit…
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No, joint and several liability would still apply even if none of the other defendants were bankrupt. What usually happens is that the defendant with the deepest pockets (most financial resources) ends up paying the most under joint and several liab…
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There seems to be an inconsistency between the section 4.2 of the CIA Discounting reading and the corresponding Excel Exhibits. * Section 4.2 of the text says to use book value * Appendix B, Sheet 1 of the Excel exhibit uses market value I…
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Hey @jptardif2, here's a link to a nice, simple explanation: * https://canliiconnects.org/en/summaries/31517 Here's how I understand this case: * Citizen's refused to pay Parson's claim based on the terms of the policy. (Parson's didn'…
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It is provided through insurers. The AB government only supplies the standard form SPF9 that insurers use when they offer coverage.
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Basically, yes. My thinking is that even though it appeared on the 2 last sittings and was worth a lot of points, I didn't think only 2 data points was credible enough to put it up higher in the rankings. There aren't very many things in that rea…
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The most direct way to answer your question about whether these quantities are assets or liabilities is to look at an insurance company balance sheet. An example of a quarterly return is provided as part of the online readings for Exam 6. If you dow…
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Sure, good idea. I inserted a comment below the BattleTable in OSFI.MCT and also in the section on market risk. We will also tweet it so people see it on the main page right after logging in.
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Yes, that's correct. The source reading mentions this in Section 1 in the "Definitions" subsection. Saying "Policy Liabilities in connection with the UPR" is more descriptive because it spells out exactly what it refers to. (But it is a little confu…
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According to the source text, these are the possible actions depending on the which branch of the decision tree you are on: * left branch: reflect (that's the only option. since it's part of your data set, it will automatically be reflected eve…
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I think they were intentionally trying to trick people with this question. The event decision tree bases the appropriate action on the actuary's awareness relative to the calculation date and the report date. It doesn't say anything about the "prese…
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Interesting point. I googled the Trilogy case to remind myself of the details and I found an interesting and very informative recent article about it published July 4, 2019: * https://www.canadianunderwriter.ca/insurance/what-could-make-caps-on…
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Ok, I checked and I found that a bug had crept into the code that generates these random problems. Thanks for letting me know. I fixed the bug and regenerated the first 2 questions so everything should be good now.
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You're right - something isn't pulling correctly. I will look into that right away.
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Ok, I see what you mean about the PR going down the more they cede. I suppose it does seem counter-intuitive. If we were to take a step back and think about the best way to set up the RSP, there is probably no single way of doing it that is demonstr…
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Hey @jptardif2, Hope you're doing well this morning! I see where you're coming from about non-ceded versus ceded EE, but here's the reason the PR (Participation Ratio) formula uses non-ceded EE: * If the formula used ceded EE, then a company…
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Oops, yes. Q6. (not 16)