javid
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Hi, I'll reference page 3 of http://www.actuaries.ca/members/publications/2005/205048e.pdf and the statement of income example on page 3 of https://www.theinstitutes.org/doc/resources/AIAF_114.pdf. In the first reference, they say that the inc…
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Hi @ferassamain. As mentioned by @chrisboersma, it can be found in the study guide. That said, I'd point you to https://www.casact.org/admissions/studytools/exam6c/f16-6C.pdf, specifically question 4 and its solution.
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So: 25000 xs 0 = 0-25000, 25000 xs 25000 = 25000-50000 100000 xs 50000 = 50000-150000 100000 xs 150000 = 150000-250000 They essentially represent layers of loss. In general 'A xs B' represents the layer of loss from "B" to "B + A". Now, t…
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This is a good question. I'll first refer you to https://www.battleactsmain.ca/vanillaforum/discussion/74/satisfactory-condition-min-mct-100-or-surplus-0#latest where there has been some discussion on this in the past. This other post may have some …
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Given that the duty to defend is a separate obligation from the duty to indemnify, in this case, with respect to the issues, there are two broad ones (given that there were a number of insurers involved): 1. A coverage issue: Which insurers are req…
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Thank you. I'm forwarding this to @graham.
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I think you may have moved away from your original question, which was "How can a ceding company reduce it LR using RSPs?". Initially you said: Ceding company may offload as many risks with LR higher than the RSP average LR. This is good. …
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It is a good answer but I think it depends on the number of points assigned to such a question. I would refer you to https://www.battleactsmain.ca/pdf/Exam_(2015_1-Spring)/(2015_1-Spring)_(12).pdf where there are a few more points that can be added …
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Hi That is a good explanation. I'd like to correct one piece "offload as many risks": there are transfer limits on how much you can send to the pool. I'd also like to add one more piece: ceding more risks will increase the expense allowance recei…
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Just going back to the linked exam for that battlecard, one of the answers given is "Estimate of unpaid claims is unusually low and MfAD is applied as a percentage". You are right that PFAD is the corresponding $ value of MfAD. In this case, what…
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To answer your first question, yes -- as per 20.30 of the return, these items are all included when computing total net investment income. To answer your second question, OCI will not be included in the formula for NI. If you would like some more…
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A good example of a valid discrepancy is the one you pointed out on https://www.battleactsmain.ca/vanillaforum/discussion/175/how-is-adjusted-investment-yield-related-to-investment-yield-from-p-c#latest.
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The formulas are different. One is a calculation required for the P&C return. The other is a supplementary metric by MSA Research (https://www.msaresearch.com/AboutMSA.aspx) for evaluating the financial health of a company.
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Hi, Thank you for pointing this out. In the example you gave, they do point to the same formula (as mentioned on page 11 of https://www.casact.org/library/studynotes/Canada-Returns18/pcVI.pdf, the worded description is "net investment income incl…
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That makes sense. Thank you for the recommendation. Forwarding it to @graham.
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Hi, Looking at the syllabus, 5.2.2 is out but 5.2.1 is still in the exam, which covers that which was tested in Fall 2018 (10% of greater of ...). It seems as though this is as much as they would like you to understand (i.e. disregard "carve-out"…
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Thanks @chrisboersma, I'll forward your suggestion to @graham.
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Hello, I have reviewed the definition given in the Solvency II paper. I would tend to lean toward that definition being a definition about the "ENID loading" (or the purpose of ENID) rather than a definition of ENID itself. Two reasons: 1. The d…
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Referencing here: https://www.cia-ica.ca/docs/default-source/2014/214114e.pdf I think it's important to distinguish between three quantities here: 1. DPAE -- asset recognized on Balance Sheet due to premium expenses paid upfront but not yet earn…
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Yes, that is a good explanation
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I'll refer to page 8 of this document: https://www.cia-ica.ca/docs/default-source/2016/216076e.pdf. I'll try to give an example below to illustrate the idea. Let's picture one person starting on Jan 1 of a year with $1 of premium. For the clai…
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Hello, One clarification: Are you referring to Quiz 3, Q8? I'll refer to 4.3.3.2 and 4.3.3.3 of http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/mct2018.aspx. The first three terms are amounts receivables and recoverables, wherea…
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Your 3 points are correct (and agree with that given at https://www.battleactsmain.ca/wiki6c/CIA.Accting) . When you look at the balance sheet, at the end of the day, it must balance, so a change in one item on the balance sheet will have to be offs…
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Hello, These reference two tabs (named 70.60 and 70.61) within the quarterly return: https://www.casact.org/library/studynotes/Canada-Returns17/PC_qrt_2018.xlsx The quarterly return and other instructions can be found in the 2018 version of th…
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Good question. The first "gross" should really be "direct" in my opinion. The rest of formulas appear to be correct.
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Thanks for pointing this out (on this post and the previous post). We will correct these and get back to you once the correction is made. * @graham
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Glad to hear it's working.
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Thanks @genevieve. We will make this correction. * @graham
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The quizzes appear to be working at the moment. Please let me know if you still have issues.
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Your reasons would be supportive of a lower margin. I recalled the CAS asking something similar in Fall 2015 question 25 (https://www.casact.org/admissions/studytools/exam6c/f15-6c.pdf). As per the examiner's comments: "Candidates were expected to i…