Exam Summaries

2019 Fall

Based on user feedback, the BattleCards corresponding to the 2019.Fall exam will NOT be loaded into the BattleActs database until after the 2020.Spring exam. This is to provide the opportunity for practice on a fresh exam prior to your real exam.

2019.Fall Avg Scores - All Candidates

Questions highlighted in orange are outdated.

link	reference	paper tested	topic	type of problem
E	(2019.Fall #1)	Baer.Intro, OSFI.SupFrm	regulation: origins, legislation vs regulation OSFI: risk assesment principles	essay
E	(2019.Fall #2)	McD.Intro	legal: Citizens's Ins Co. v Parsons, Insurance Reference Case	essay
E	(2019.Fall #3)	Marshall.Benefits	Ontario auto: description, flaws, Action Plan	essay
E	(2019.Fall #4)	ICBC.Affordable	BC auto: description, affordability issues, alternative model	essay
E	(2019.Fall #5)	AAA.CrdSc	credit score: uses, arguments for & against	essay
E	(2019.Fall #6)	Baer.Intro	legal: Fletcher v MPIC (duty of care)	essay
E	(2019.Fall #7)	Dav.NonPec	legal: Trilogy Ruling	essay
E	(2019.Fall #8)	Harris.Tort	tort reform: joint & several liability, other issues & reforms	essay
E	(2019.Fall #9)	CAS.GovtIns	evaluate govt programs: agri-insurance, worker's comp	essay
E	(2019.Fall #10)	PACICC.Comp, Dibra.Fail	PACICC: goal, funding, costs of involuntary exit	essay
E	(2019.Fall #11)	IBC.Flood, IIC.Terrorism	U.S.: flood & terrorism, Canada: design a flood insurance program	essay
E	(2019.Fall #12)	Dutil.FA	FA: goals, mechanisms, transfer requirements, calculate: loss ratio	essay / calc
E	(2019.Fall #13)	Chev.Agric	Growing Forward 2: programs & funding	essay
E	(2019.Fall #14)	CCIR.ARinstr, CIA.PrLiabs	calculate: net commissions, premium deficiency	calc
E	(2019.Fall #15)	CIA.MfAD, CIA.Taxes	calculate: APV, discounting the asset for future income taxes	calc
E	(2019.Fall #16)	CCIR.ARinstr, BK.Reins	calculate: total income	calc
E	(2019.Fall #17)	OSFI.Eqk, OSFI.MCT	earthquake: risk management, calculate: earthquake reserves	essay / calc
E	(2019.Fall #18)	CCIR.ARinstr	calculate: excess (deficiency) ratio	calc
E	(2019.Fall #19)	OSFI.MCT	calculate: MCT ratio	calc
E	(2019.Fall #20)	OSFI.Stress, CIA.DCAT, OSFI.MCT	stress-testing: purpose, reverse stress-testing, calculate: MCT ratio	essay / calc
E	(2019.Fall #21)	CIA.DCAT, OSFI.MCT	assess: financial condition, impact on MCT components of PAS	essay
E	(2019.Fall #22)	OSFI.ORSA, OSFI.MCT	ORSA: setting internal targets, MCT: risk components	essay
E	(2019.Fall #23)	MSA.Ratios	calculate: ROR, net loss reserves to equity, net leverage, inv. yld.	calc
E	(2019.Fall #24)	BCAR.Cdn2018	calculate: BCAR, explain: covariance adjustment	essay / calc
E	(2019.Fall #25)	Feld.RtAgs	rating agency models: Moody's, Standard & Poor's	essay
E	(2019.Fall #26)	IFA.Solvency2	ENID: examples, reasons for trying to identify ENID	essay
E	(2019.Fall #27)	IAA.RiskAdjs, CIA.IFRS17	IFRS17: non-financial risk, discounting (versus current practice)	essay
E	(2019.Fall #28)	CIA.Discnt	discount rate: net claims liabilities, ceded claims liabilties	essay
E	(2019.Fall #29)	OSFI.AA	AA: qualifications, peer review of AA: objectives, expectations, material changes	essay
E	(2019.Fall #30)	CIA.Models	model risk: severity & likelihood of model failure	essay
E	(2019.Fall #31)	CIA.Subseq	course of action: missing claims, acquisition, catastrophe	essay

#15a This problem is the reverse of a normal "APV" problem. Normally you start with the undiscounted loss and you have to calculate APV. But here, you start with the gross APV and have to work backwards to the net undiscounted loss. There is also a typo in the examiner's report solution to this problem. For an explanation, see this forum discussion. (shout-out to meenuarora!)

#18 This problem is outdated because "Investment Income from Insurance Operations" has been removed from the CCIR.ARinstr reading on Annual Statement Instructions.

#23(a.ii) Error in equity calculation in examiner's report. It should be Eq = (700,000 – 600,000) + 30,000 – 1,000 – 14,000 = 115,000. Error in net loss reserves calculation. It should be Net Loss Reserves = 380,000 - 140,000 = 240,000 (shout-out to NZ for fixing my typo!)

#23(b) The acceptable range for "Overall Net Leverage" should be 500% (not 400%) but the conclusion is still valid - that the ratio is outside the acceptable range. (shout-out to ZJ for noticing that!)

#27(b) The answer to part (b) of this question in the examiner's report is based on a reading that's no longer on the syllabus and the answer conflicts with material in current readings.

2019.Spring

Based on user feedback, the BattleCards corresponding to the 2019.Spring exam will NOT be loaded into the BattleActs database until after the 2019.Fall exam. This is to provide the opportunity for practice on a fresh exam prior to your real exam.

2019.Spring Avg Scores - All Candidates

Questions highlighted in orange are outdated.

link	reference	paper tested	topic	type of problem
E	(2019.Spring #1)	Baer.Intro, McD.Intro	regulation: IBC goals, guidelines vs legislation, foreign insurers	essay
E	(2019.Spring #2)	KPMG.RegOv	regulation: provincial approaches to auto insurance	essay
E	(2019.Spring #3)	AB.TNC	coverage: accident benefits trigger, non-coverage situations	essay
E	(2019.Spring #4)	FSCO.PPA, FSCO.UBI	pricing: ON (territories, simplified filing, discounts), UBI (filing, privacy)	essay / calc
E	(2019.Spring #5)	Land.Cases	topics: duty-to-defend (Wawanesa, Nichols, Alie)	essay
E	(2019.Spring #6)	Land.Cases	topics: Precision Plating v Axa, catastrophic impairment	essay
E	(2019.Spring #7)	Harris.Tort, CAS.ATRA	legal principles: J&S liability etc... + reforms	essay
E	(2019.Spring #8)	Dutil.FA	FA mechanisms: identification, provinces of operation	essay
E	(2019.Spring #9)	IBC.Flood	flood risk management: bundling, financial mgmt, preconditions	essay
E	(2019.Spring #10)	CAS.GovtIns, PACICC.Comp, IBC.Flood	govt program evaluation: criteria, evaluate PACICC & NFIP	essay
E	(2019.Spring #11)	Marshall.Benefits	Ontario auto: 5-part action plan, value gap	essay
E	(2019.Spring #12)	PACICC.Comp	calculate: policyholder compensation after insolvency	essay / calc
E	(2019.Spring #13)	OSFI.MCT	calculate: MCT ratio	calc
E	(2019.Spring #14)	CIA.PrLiabs, MSA.Ratios, OSFI.MCT	calculate: premium liabilities, DPAE, explain: ROE impact, loss ratio basis	essay / calc
E	(2019.Spring #15)	CCIR.ARinstr	calculate: excess (deficiency) ratio, interpret ratios	essay / calc
E	(2019.Spring #16)	CIA.Taxes	asset for future taxes: definition, calculate: estimated effect of discounting	essay / calc
E	(2019.Spring #17)	Odo.FinReg	calculate: value of commuted claims	calc
E	(2019.Spring #18)	OSFI.MCT, BCAR.Cat, OSFI.Eqk	calculate: MCT cat margin, explain: BCAR cats, earthquake risk mgmt	essay / calc
E	(2019.Spring #19)	CIA.DCAT, CIA.Subseq	DCAT: base scenario, fin. condition, mgmt actions, ripple effects, catastrophe	essay
E	(2019.Spring #20)	CIA.PrLiabs, CIA.MfAD, CIA.Subseq	errors: identify AA's breaches of CIA standards	essay
E	(2019.Spring #21)	MSA.Ratios	calculate: inv. yld., ROE, ROA, net U/W leverage, UCAE	calc
E	(2019.Spring #22)	Feld.RtAgs	financial ratings: reasons for, lines of business where it's crucial	essay
E	(2019.Spring #23)	CIA.Mat	materiality: definition, considerations, disclosure, vs DCAT	essay
E	(2019.Spring #24)	CIA.MfAD	MfADs: ranges, selection outside ranges, desirable risk margin traits	essay
E	(2019.Spring #25)	OSFI.AA	peer reviewer: requirements, process, comparison to external auditor	essay
E	(2019.Spring #26)	CIA.Models	terms: model, model risk, model evaluation: severity & likelihood of failure	essay

2018 Fall

Based on user feedback, the BattleCards corresponding to the 2018.Fall exam will NOT be loaded into the BattleActs database until after the 2019.Spring exam. This is to provide the opportunity for practice on a fresh exam prior to your real exam.

But for reference, here is a listing of topics and questions for 2018.Fall.

The code: (Bloom) indicates that portions of that question were "Bloom's Taxonomy" which means they required a higher-order understanding of the material, versus simple memorization.

2018.Fall Avg Scores - All Candidates (click to download then open in Excel)

Questions highlighted in orange are outdated.

link	reference	paper tested	topic	type of problem
E	(2018.Fall #1)	McD.Intro	provincial contract & transaction matters, federal vs provincial authority	essay (c: Bloom)
E	(2018.Fall #2)	McD.Intro	insurance reference case, OSFI's requirements for insurer incorporation	essay
E	(2018.Fall #3)	KPMG.RegOv	Canadian approaches to rate regulation, advantages of flex rating	essay
E	(2018.Fall #4)	AB.TNC	use periods	essay
E	(2018.Fall #5)	ICBC.Affordable, Marshall.Benefits	issues & solutions to auto insurance issues in BC and ON	essay
E	(2018.Fall #6)	FSCO.PPA	prohibited/permitted rating variables in ON	essay
E	(2018.Fall #7)	IBC.Code	wording of customer consent request for using credit scores (principle #3)	essay
E	(2018.Fall #8)	Land.Cases	Alie v. Bertrand Frere, Precision Plating v. Axa	essay
E	(2018.Fall #9)	CAS.ATRA	class action lawsuits, jury services reform	essay
E	(2018.Fall #10)	Dutil.FA	differences between the ON and AB risk-sharing pool	essay
E	(2018.Fall #11)	IBC.Flood	evaluate flood insurance systems, increasing uptake rates	essay
E	(2018.Fall #12)	Chev.Agric	probable yield tests, premium rates, self-sustainability	essay
E	(2018.Fall #13)	Dibra.Fail, PACICC.Comp	causes of insurer failure, PACICC assessments	essay/calc
E	(2018.Fall #14)	Webel1.TRIA	uninsurability of terrorism, loss-sharing, other govt solutions	essay (c: Bloom)
E	(2018.Fall #15)	OSFI.MCT	calculate MCT ratio	calc
E	(2018.Fall #16)	CCIR.ARinstr, CIA.MfAD, CIA.Accting	ALPHABET CITY: calculate various financial statement quantities	calc
E	(2018.Fall #17)	IFA.Solvency2	ENID: defn, purpose, considerations, benefits	essay
E	(2018.Fall #18)	CIA.Reins, Frei.RskTrans	principles of risk transfer, risk-limiting features	essay (c: Bloom)
E	(2018.Fall #19)	OSFI.MCT, OSFI.Eqk	calculate earthquake reserves, principles of managing earthquake risk	calc
E	(2018.Fall #20)	CIA.DCAT, CIA.Mat	base scenario, PAS, management actions, satisfactory financial condition	essay/calc (c: Bloom)
E	(2018.Fall #21)	BCAR.Cdn	BCAR premium risk, factors affecting BCAR value, BCAR versus MCT	essay
E	(2018.Fall #22)	OSFI.Stress	stress testing in flood insurance, responsibilities of snr mgmt, focus areas	essay (ac: Bloom)
E	(2018.Fall #23)	OSFI.ORSA, OSFI.TargCap	identify how AA did not follow guidelines in setting internal target capital	essay (Bloom)
E	(2018.Fall #24)	CCIR.ARinstr, MSA.Ratios	calculate financial statement quantities, MSA ratios	calc
E	(2018.Fall #25)	OSFI.MCT. OSFI.ORSA	calculate MCT, describe why ORSA may be better than MCT	essay/calc
E	(2018.Fall #26)	CIA.MfAD, OSFI.MCT, CIA.PrLiabs	premium vs claim liabilities, diversification benefit, DPAE, flood risk in MCT	essay (Bloom)
E	(2018.Fall #27)	CIA.Accting	calculate NI & OCI, effect of market rate change, HTM bonds, FV Option	essay/calc
E	(2018.Fall #28)	CIA.Valn	effects of IFRS 17	essay
E	(2018.Fall #29)	CIA.Subseq	definition of subsequent event, decision tree	essay
E	(2018.Fall #30)	OSFI.AA, ICA.Ch47	AA qualifications, AA reporting duties, AA resignation	essay

2018 Spring

Based on user feedback, the BattleCards corresponding to the 2018.Spring exam will NOT be loaded into the BattleActs database until after the 2018.Fall exam. This is to provide the opportunity for practice on a fresh exam prior to your real exam.

But for reference, here is a listing of topics and questions for 2018.Spring

Questions highlighted in orange are outdated.

link	reference	paper tested	topic	type of problem
E	(2018.Spring #1)	McD.Intro	insurance reference case	concept
E	(2018.Spring #2)	FSCO.PPA	Ontario filing requirements	concept/calculation
E	(2018.Spring #3)	IBC.Code	analyze a scenario related to credit scoring	concept
E	(2018.Spring #4)	FSCO.UBI	rationale for UBI, regulator concerns, customer communications	concept
E	(2018.Spring #5)	Land.Cases	(a) AMOS vs ICBC (b) removed from 2018.Fall syllabus	concept
E	(2018.Spring #6)	Dav.NonPec	reasons for caps on damages, situations where caps don't apply	concept
E	(2018.Spring #7)	⊗	⊗ removed from 2018.Fall syllabus	⊗
E	(2018.Spring #8)	Chev.Agric	Growing Forward program, production insurance, role of private insurers	concept
E	(2018.Spring #9)	IBC.Flood	categorization of flood insurance programs, create a flood insurance program	concept
E	(2018.Spring #10)	CAS.GovtIns 1	reasons for govt participation in insurance, efficiency overstated, evaluation	concept
E	(2018.Spring #11)	Dibra.Fail	analyze scenario for potential insolvency	concept
E	(2018.Spring #12)	Dutil.FA	FARM vs RSP, risk transfer rules	concept
E	(2018.Spring #13)	CIA.Accting, OSFI.MCT 2	bond valution, qualitative impact of bond values on MCT ratio	concept
E	(2018.Spring #14)	OSFI.MCT, CIA.MfAD, CIA.PrLiabs 3	interest rate risk margin	calculation
E	(2018.Spring #15)	CCIR.ARinstr, CIA.MfAD 4	excess (deficiency ratio), discounted & undiscounted loss ratios	calculation
E	(2018.Spring #16)	CIA.Reins, BK.Reins	(a) key principles of risk transfer (b) see Ex 4 in BK.Reins paper (c) functions of reins	concept/calculation
E	(2018.Spring #17)	OSFI.MCT, OSFI.Eqk	earthquake reserves (ERC), earthquake modeling & financial resources	concept/calculation
E	(2018.Spring #18)	OSFI.MCT, OSFI.TargCap	MCT ratio, regulatory requirements	calculation
E	(2018.Spring #19)	CIA.DCAT	plausible adverse scenarios, ripple effects, evaluating insurer health	concept
E	(2018.Spring #20)	OSFI.ORSA	comparing MCT to ORSA	concept
E	(2018.Spring #21)	MSA.Ratios	ROE, ROA, net leverage	calculation
E	(2018.Spring #22)	BCAR.Cat	BCAR data quality, principles, reason for 2nd BCAR NatCat test, BCAR tolerance	concept
E	(2018.Spring #23)	Odo.FinReg	basic accounting concepts	concept
E	(2018.Spring #24)	CIA.DCAT	analyze scenario & actions of appointed actuary	concept
E	(2018.Spring #25)	CIA.Subseq	subsequent events	concept
E	(2018.Spring #26)	CIA.MfAD	PfAD ranges, interpreting PfADs	concept
E	(2018.Spring #27)	OSFI.AA	peer review, external audit	concept

¹ There is a forum thread regarding the answer to part (c) of #10 in the examiner's report. It appears they were unreasonably strict in their interpretation of the reading. See this forum thread.

² The answer to part (b.ii) of #13 in the examiner's report is wrong. See this forum thread for an explanation.

³ Strictly speaking, you cannot solve the problem as given because they did not provide the interest rate risk margin %. You had to assume it was the same as the interest rate MfAD. Sample answer 1 in the examiner's report used 1.25% as the interest rate risk margin, which you could not have known. Sample answer 2 used 0.5%, which was the interest rate MfAD. This is not correct but it was the only reasonable assumption, otherwise you could not solve the problem.

⁴ There is an typo in part (b) of #15 in the examiner's report. In sample answer 1, they add the investment income in the numerator instead of subtracting it (+1520.7 instead of -1520.7). Their final answer is correct, however. Note that sample answer 2 is done correctly. (Thanks to xQEDx for noticing this!)