Staff-T1
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Assumed written premium, ceded written premium, direct written premium
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No, you cannot. The latest AY a claim from a policy issued in PY X can occur is in AY X +1. This is the first basic concept explained in exam 5. For a given PY say 2024, the first day a policy can be issued is Jan 1 2025 which means any loss should …
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I wouldn't overthink it that way. Issue year is the same as policy year
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No your calculation is incorrect. You are double counting Cap B and Cap C. Why do you say that Cap B and C are not included in the Gross Capital Available in the Battlequiz question?
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Initial recognition and inception are the same thing. In an exam question if calculating FCF they will let you know how much premiums are outstanding. You will know if the premium has already been received
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You can check number 13 in the sample IFRS17 questions. I did the calculations in Excel for the unwinding of discount according to the expectations hypothesis
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Case 1: Yes Case 2: No reduction to capital available and yes you are correct wrt the capital required for unregistered reinsurance
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If you only use one of PAA and GMM then the column corresponding to the method that is not used will just have an AIC of 0
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Total Investment income includes realized gains. For NI, you are not given all the components here which is why you can't directly derive net income from the information provided. I think that will address most of your questions. You are double cou…
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I actually sat for 6C in fall 2018 I don't remember the paper, it has probably been removed as it was referring to an old article but I believe harris tort covers trends in tort and possibly reform
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* Generally true * Yes * That diagram is immediately after the first premium has been received, so just after time 0. * In row 96, I am working on the logic used by the question creator in reaching the answer, not that I necessarily agree with it…
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Question c can be answered using either work experience or directly using first principles: * If you have done PPA in Ontario, then you know it can't be used for pricing because it's prohibited * If you have done PPA in Alberta, then you know…
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Usually it would be pretty obvious (i.e. they will specifically call out to use issue year). Otherwise you will be fine to just use AY if nothing is said.
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1) Nothing changes. Just use the same formula if both PAA LRC and FCF are positive 2) I'm not sure what you mean by "combining both". The PAA LRC is the PAA LRC and FCF is basically the GMA LRC
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* That's not the same discount curve. The first discount curve has 4% discount at the first period. You are choosing 4.2% as the discount during your first period for time 2. Basically using the same discount curve means at time 2, you use the same …
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Yup that's my understanding of this text too
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That's right
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yup I meant half in 2021 and half in 2022
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Steps D and E are basically saying take |A - B + C| since they are repeating the steps twice. C is irrelevant because they never test on derivatives. It's not possible to calculate the duration of derivatives by hand so the point is moot as it won't…
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Both the model solution and the Battleact commentary includes the RA. Double check the Excel formulas
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That's to find the minimum capital required. Your CapReq is just 1.5X Min Cap Req
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1) When you reach year-end, you would roll-forward your CSM: * You would unwind a portion of the discount which increases the CSM, while reducing the CSM for service provided during the period. * Actual experience that differs from expectation…
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I mean it depends on what method you have chosen for your RA -> It can be anything appropriate as stated in the note
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You are allocating the cash flows to issue years in step 2. Think of it this way: For claims in AY 2022, half of them will be for policies issued in 2021 and half will be from policies issued in 2022 on average, assuming uniform writing of premium. …
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1) The PAA LRC excl LC is simply UEP - DAC. If DAC is > UEP, then it will be negative. I suggest going through the sample LRC Excel provided by the CAS to view his 2) I don't really understand your question so you may need to rephrase it. H…
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* Yes, the margin for unregistered reinsurance is a component of insurance risk -> But the insurance risk component is usually split out into its subcategories * You only apply a deduction if this amount is greater than 0. It's highlighted in t…
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I'll get back to you later this week as I'm travelling for work
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I'm travelling for work and will get back to you sometime later this week
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I'm travelling for work and don't have access to my computer so I'll get back to this when I'm back later this week
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They just basically do not want insurers to grow too quickly and adding capital is a way to penalize for it and stop insurers from growing too quickly without capital to support it. As to why 20%, that is arbitrarily determined by OSFI