Graham
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- Graham
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Good idea! You could really go down a rabbit hole here!
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Ok, that might provide a faster check. Something about it bothers me though. I haven't tried to create an example where your method wouldn't work, but I wonder if what you're doing is analogous to a univariate approach, whereas comparing each cell t…
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Can you post your calculations? I want to make sure I understand exactly what you're doing and how you're drawing your conclusions. (You can copy a group of Excel cells and just past them in this window.) This is what I got when comparing to the col…
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Thanks for the compliment! Glad you're enjoying the BA course! 😀 I tried first rebasing your 3rd last column (credibility weighted relativity normalized) as shown below, and although I didn't get the exact answer as in the examiner's report, it's ve…
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Thanks! I will take a look at these this week.
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It's good to get those rookie mistakes out of the way on the practice exams!
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Oh yes, I took a survey! Everyone LOVES the interpolation step of the BS-Paid method! 🤣 Question 1: Those ranges are calculated using formulas and the formulas somehow got copied incorrectly when I created that exam question. I believe I've fixed it…
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Right. That was my final answer also. I presented the solution in 2 steps where the final answer is $300. https://www.battleactsmain.ca/battleacts5.ca/forum5/uploads/153/EJFURQ6F9CXQ.png
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You are correct - that was a typo. I will correct that and upload the new version. Thanks!
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Yes, those were typos. (This is the first exam cycle where practice exams 3 and 4 were available so the typos are still being corrected. Thanks!)
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Yes, that's a typo. It should say "PY" not "CY". I will fix it. Thanks.
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For (c-i): You are getting confused between calculating written exposures versus earned exposures. For written exposures, you count the number of policies written in 2023 that are still in-force at the end of 2023 (this is 3) and then MULTIPLY by th…
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Did you mean to reference 2017-Fall Q13? The screen shot didn't seem to match that question. But in any case, for 1-step trending, you should get the same trend period regardless of whether you base the trend period calculation on earned or written …
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Yes, you've got it! Let me confirm your understanding: Base Rate of $1666: The base rate of $1666 is set to ensure that the overall premium across all territories and amounts of insurance (AOI) meets the company's target of a 15% increase. Minimum P…
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In general, the on-level earned premium should be used to calculate the expected claims method (ECR) ultimate when it is available. This is because the on-level earned premium reflects the premium adjusted to a common rate level, which ensures that …
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Yup, that was an error. Thanks for pointing it out. 😀 I sent you a DM. Click the envelope just under your name in the upper left part of the screen.
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Oops, typo! Thanks for letting me know! It should download correctly now. 😁
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Let's break it down: The formula used, $1666 * 0.5 * 0.85, calculates the premium for the combination (Territory 1, AOI < 100k). This results in: 1666 * 0.5 * 0.85 = 707.05 This amount is less than the required minimum premium of $800. Satisfying…
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The policy fee and fixed expense are treated differently in ratemaking because they have distinct purposes and are accounted for in separate parts of the calculation. 1. Policy Fee vs Fixed Expense: The fixed expense is a cost incurred for each exp…
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The calculations in the sample answers are equivalent to the emergence formula. I applied the emergence formula just to check and I got the same answer. The reason they didn't apply the emergence formula directly is that you aren't directly given th…
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These questions have randomly generated dates. So no, in real life, as of today (Sep 9, 2024) you wouldn't know the values at the end of 2025. You just have to pretend you are doing this analysis sometime in early 2026 after the year-end data for 20…
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The given information states that exposures are inflation-sensitive. Whenever you're told that, you need to apply the exposure trend appropriately. If there were no exposure trend (or if the exposures were not inflation-sensitive) then you could use…
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Oh, ok. The reason they used AED (Average Earned Date) for the end of the trend period is that the START of the trend period is based on EP so they used AED for that as well. The rule is that you have to be consistent. That means use AED for both th…
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Q1 required 2-step trending but Q2 didn't specify 1-step or 2-step trending. And in Q2, there was no mention of historical trends being different from future trends so for Q2, you were allowed to use 1-step trending. And in fact all 3 sample solutio…
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You raise a valid point, and the sample answers for part (c) are all over the map. Here is the "official" explanation: When calculating deductible factors, the purpose is to understand how much risk is being retained by the insurer versus …
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Take a look at this forum discussion to see if it helps answer your question: https://www.battleactsmain.ca/battleacts5.ca/forum5/index.php?p=/discussion/80/spring-14-8 Footnotes 2 & 3 about that exam problem from the Battle Table might also she…
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Yup, a red herring. I know that sometimes math teachers give the advice that if you didn't use all the information given in a problem then you must have missed something, but that's not always true. (Or maybe just in high school math!)
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Your comment about the potential distortion of the premium-based projection method in scenarios where the overall premium is decreasing is correct. The premium-based projection method assumes a stable or predictable relationship between premiums and…
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You are not mistaken in thinking that starting from AEP could theoretically work, but in this specific problem, the setup is tailored for AWP. Attempting to use AEP without making significant adjustments in your calculations will likely lead to disc…
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I would have to see your calculations to give you a more detailed answer but the short answer is no, that doesn't seem like it would work.