Question 20 Spring 2019

Hello,

In the examiner report it mentions for common errors, "Stating that MfADs must be the same for premium liabilities and claim liabilities"

Aren't MfADs different for premium and claim liabilities?

Thank you

Comments

  • Yes, MfADs for premium and claim liabilities will be different in general. Here's an excerpt from the CSOP:

    This is one of those details from the CSOP that I don't think it's realistic to try to memorize however. The best strategy for this particular exam question is to use a general knowledge and common sense. It would be pretty tough to get the full 3 points here. Note from the Exam Summaries wiki page page that the scores on this question were not very good, the average score being about 55% or about 1.65 points out of 3.

  • Hi Graham,

    Thank you for the response.

    With that excerpt from the CSOP, how come in the examiner report it mentions that as an error? Are they saying people said the two should be the same?

    Thank you

  • Yes, I assume some people said it was an error for claims and premium liabilities MfADs to be different. If you read through the scenario provided in the question, it is stated that there were some differences in MfADs between claims and premium liabilities, and some people may have guessed that this was an error when it really wasn't.

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