dogechow

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dogechow
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  • I still don't understand why the formula PAA LRC excl LC = UEP - prems receivable - DAC is incorrect. According to the paper, at subsequent measurement the premium portion of the LRC calculation reflects: "premiums received up until the end of …
    in Onerous vs Non onerous contracts for GMA and PAA method clarification Comment by dogechow May 2023
  • Is it correct to interpret L$ as the maximum loss for the coverage? i.e. Indem$ = MAX ( 0, PG - AP ) x (insured unit price), so if AP = 0 then this becomes: PG x (insured unit price) = L$
    in Calculate Liability for production guarantee liability Comment by dogechow October 2022
  • But why does the wiki say to use the reference portfolio yield "not" adjusted to match the risk profile of insurance contracts when calculating the ALP? It sounds like we are subtracting credit risk from it.
    in Combined approach for estimating LLP Comment by dogechow October 2022
  • 5) would basically be a quantitative assessment of 2), right?
    in PAA Eligibility Comment by dogechow May 2022
  • I didn't realize that there was an earlier thread discussing this inconsistency. I guess the best thing to do is to clearly state your assumptions. https://www.battleactsmain.ca/vanillaforum/discussion/44/fall-2017-25-ro
    in 2015 Fall Q22 Comment by dogechow April 2022
  • So if "investment income" does not include realized gains and "net investment income" does, shouldn't the formula for ROR be: ( U/W.Inc - CapGains + NetInvInc + IncFrmSubs ) / GWP instead of: ( U/W.Inc - CapGains + InvInc + IncFrmSubs ) / G…
    in 2015 Fall Q22 Comment by dogechow April 2022
  • Hi Graham, To clarify, it's 2014F Q13 part a) that is giving me confusion. In this question, we are specifically comparing FARM and RSP, but the sample solution seems to be comparing FA (as a whole) to RSP when it comes to participation ratio. I'…
    in 2014F Q13 a. Comment by dogechow April 2022
  • Hi Graham, I'm referring to the 5 classes of business under "Participation Ratios and Sharing" (end of BattleQuiz 1). If I understand correctly, only the first two classes are relevant for determining the participation ratio of FARM: 1) PPA (n…
    in 2014F Q13 a. Comment by dogechow April 2022
  • Hi Graham, Above you stated that: "the formula for the Participation Ratio is: PR = Co.EE(not ceded) / Prov.EE(not ceded)" This is true for RSP, but would this also apply to FARM? After all, the member companies don't cede risks to FARM …
    in FARM Participation Ratio Comment by dogechow April 2022
  • Or is it saying that the classes of business are the separate pools that need to be allocated among the members, and the way that is done is by taking the market share of non-ceded exposures? I guess what's confusing me is that the paper says the…
    in Participation Ratio Comment by dogechow April 2022
  • If the company's participation ratio is based on non-ceded EE, doesn't this contradict page 4 of the text where the five classes of business are listed? There, it states that a member's participation is determined by "Business transferred to a risk …
    in Participation Ratio Comment by dogechow April 2022
  • Would the implication then be that the PAA simplification is a conservative estimate of LRC for non-onerous contracts, since (UEP - DAC) should be > 0?
    in LRC under GMA for non-onerous contracts Comment by dogechow March 2022