For BA Sample Exaam #16 we use time t=1,2,3,4,5... to discount the cost of capital, while in CAS IFRS Sample #4, they use t=0.5, 1.5, 2.5... to discount the cost of capital.

For part b), for the unwinding using spot rates method, why are there two ways/answers to get the unwind?

For the calculation of margin(LIC), I think the solution is missing the 1.1 factor

In the solution of question #1, the following items are included in liabilities but are listed as assets on pg 20.10:

I thought we were supposed to reverse the sign of the change, so if there was a decrease we would add back that amount. However, in the first question under the Spring 2017 #13 practice problems, the

I'm not sure but I think #2 are just quantitative methods listed to measure/calculate what's listed in #1

In the CAS SampleQuestion #17, I noticed future acquisition costs were not discounted. Do we always assume that future acquisition costs will be realized at contract inception (in this case, it would

* (2015.Fall #13) - part (c)

* In sample 8, they say "Group #1 and #2 do not have coverage difference of more than one year => Combine". Are they assuming they both start within 1 year from each other?

When calculating the FCF, we + (Deferred acquisition cost - Net of Cancellation) - (Deferred acquisition cost - Gross of Cancellation).

For question (i), why did the answer say coverage period is 2 years?

Hi there,

in the updated BA practice exam #16, I don't understand why the APV = FCF (LIC + LRC) + Risk adjustment for non-financial risk.

Spring 2018 #1 : The federal parliament required insurance company to incorporate federally if it wants to

* So in the end, we can say that f the money the insured receives, $350K "comes from" the insurer while $49 350 is from the PACICC (Same answer as option #1 in the initial problem).

To increase affordability, why does risk based pricing make it more affordable? I would have thought having government subsidize for high risk would make it more affordable

Why the sample answer takes the maximum of East PML and West PML? Where can we find this formula?

Similarly, in Question Fall 2019 #11 b., it is suggested to have a Mandatory program. This way it maximize the take-up.

In this BattleCards, it says that the interactive rating is a Qualitative analysis only.

Hello,