graham
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In that problem, you're given the premium growth is 7%. You don't have a capital charge for premium growth unless the growth is over 20%.
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I admire your diligence in going back to the source reading. If you really want to learn about this case, that's what you have to do. Based on past exams, however, you only have to know the facts/issues/rulings as given in the BattleCards. The study…
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That might be part of it (or all of it). If I'm being honest, I cannot answer confidently. I can't find anything in the syllabus reading that provides a definitive answer. When I have time, I'll research this using other sources. In the meantime,…
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That's a good observation. You're recalling, of course, that the standard range for the investment rate MfAD is 25-200bps. There is a permitted exception to the standard range, however, and this is described in Section 2260.04. of the CIA.CSOP paper…
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When students reach the point of answering their own questions, my work is done! Slay the beast!
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You're welcome!
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Thank you pointing that out. These examples were generated about a year ago, and there was a bug in the program. I fixed the bug but I didn't realize that these examples were generated with the old version of the program. You're the first person to …
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You're welcome!
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Section 4.4 from the OSFI MCT reading leaves out part of the explanation. Self-insured retentions and deductibles have a similar final effect, but, as you said, the cash flows between parties invovled are different. Just to review: * Deductible…
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Hi qweii The solution in the examiner's report is very confusing. You're not the first person to ask this question so I decided to add a wiki page with the explanation. You can get there using this link: http://www.battleactsmain.ca/wiki6c/Exp…
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Yes, I believe you are correct. I have updated the wiki article and BattleCards to reflect that. I also gave you a shout-out it in the wiki article!
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Ok, at the risk of sounding dumb, I found this very confusing as well. I even went back to the FA website and looked up their Plan of Operation, but it wasn't very helpful. The text in Dutil was just copied verbatim from that section of the Plan of …
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You're right that the LOC limit wasn't being taken into account. I believe it should be. I made a change to the practice template so that the LOC limit is never breached in the given information. (If this were still on the syllabus, I wouldn't have …
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Hey cgc2018, The correct answer seems to depend on what is meant by "distribution from insurer". The question is not clear on this. There is a big difference in the total reimbursement to the insured between the two sample answers. I agree that s…
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Yes, you're right. I was a little sloppy with the wording. I've edited the OSFI.MCT wiki article make this clearer. Thanks.
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This is what normally happens regarding unearned premium: * a portion of the premium that's unearned at the end of the year should be ceded to the reinsurer * the portion ceded depends on the reinsurance contract and how much time is left in t…
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Since the problem asked about a 5-year time horizon, you would only have to do the 5-year table. I think the reason they included the 1-year table is that it might be easier to think through 1 year first, then extend the results to 5 years. This …
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I'm out of town for about 10 days, and the reading on agricultural insurance is not available online, so I can't check the reference you provided for page 5, point 3. But I believe that answer is as follows: Recall the exam problem 2016.Spring # …
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If I understand your question correctly, you're asking about the difference between the following Business Risk Management programs: * Agri Insurance, Agri Stability, Agri Recovery The best answer I can give is to direct you to the Canadian…
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I agree with your comments about the questions relating to DAQKDUP versus improving risk estimation. I've changed the BattleCard answer for 2017.Spring # 17c accordingly. Thanks for pointing that out. About your other question about 2016.Spring #…
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Suppose I told you there was an earthquake of magnitude 2.6 in Saint-Colomban Quebec. How would an earthquake model process that information? Well, the model would have to somehow convert the magnitude of an earthquake in that location into a loss d…
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Sample answers: I notice from time to time that some of the sample answers in the examiner's report are not completely correct. I think they are selected from actual candidate papers as answers that are good, and may have received full credit, but a…
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If I were answering this question, I would first briefly explain the conditions that must be satisfied for an insurer to be in good financial condition. Then I would perform the check and state my conclusion. As you said, this is what they did in…
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Actually, my interpretation of the German system is a little different from yours. The uptake is listed as 25-30%, which didn't seem that high. That's in the middle of the 7 countries listed in the table. But maybe, as you implied, that's evidence t…
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Confirming your understanding: * It's a great idea to make up a numerical example to aid your understanding. I think your example is correct in spirit, but I can't say for sure that it works exactly like that since the reading doesn't provide s…
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The difference between Japan and the U.K. (which is not evident from the table on p13) is that in Japan you have to opt-in for the bundling of flood with homeowners. In the U.K., it is automatically included. That means a U.K. policyholder would hav…
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I believe the difference is in the time periods: decades versus years The way I read it is that the federal payments on flood assistance were referring to totals across a decade. In the second half of the paragraph, they are talking about annual …
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Let me start by writing out the formula used in the examiner's report: (BTW, the "*" in this editor's markup language means "italics". If you want to indicate "multiplication", you have to use "x". That's why your formulas came out funny and you hav…
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For your last question, 'treatment of losses in Ontario PP Auto Filing" is from the FSCO.PPA reading. Check BattleCards 21 & 22 in the Full BattleQuiz for that reading. (I will need to change the reference for 2017.Spring #7b(iv) to reflect that…