Staff-T1
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I think that would be an acceptable answer.
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* Parliament of Canada * Amended the criminal code and implemented a new federal insurance act * Ultra-vires. Privy council decided that the amendments to the criminal code were invalid. It was seen as an attempt to to regulate the contracts of in…
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You can just state any of the general advantages of CTE vs VAR. Coherence, subadditivity, etc. This is more an Exam 7 question tbf
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I don't think you would need to memorise it. I never memorised any factors when I took 6C
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Yes, risk attaching contracts are mostly never automatically eligible (Unless they are < 6 months long but never seen an actual contract like this before) Loss occurring contracts with coverage period of one year would automatically be eligibl…
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Why would you ignore the reinsurance coverage? Also phase-in approach is no longer relevant
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1) Think that is referring to IFRS4 CFs that were previously accounted for separately from insurance contract cash flows 2) Yeap 3) Some UW costs, cannot be directly attributable to an insurance contract, i.e. an UW working to work on multiple quo…
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its the same thing algebraically lol
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I actually cant find the latest limit on the amount of interest that insurers are allowed to charge, but this seems right based on the answer key
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Discounting of LIC is related to the LRC if you are using PAA and expect claims to be settle within 1 year of being incurred (basically very short-tailed lines). In practice, LIC is always discounted
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* The risk adjustment should only consists of risks related to insurance contracts. Market, credit and operational risk has nothing to do with insurance contracts. * Ct is the cumulative capital remaining that is needed at time t, not the increment…
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That's a good point. That said, I do recall that under IFRS17 because unrealized gains are in the NI, they will no longer be in OCI
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As I mentioned above, gross and net. It is easier to restate the net triangle by applying reinsurance terms to the gross triangle. Directly developing the ceded is difficult when you have changing limits as the ldfs will not be stable given there is…
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PACICC will only pay up to 250K for any non-personal property policy and 300K for personal property policies. Any claim above that amount would not be compensated. Distribution by the liquidators will not end up as additional payments to the insured…
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Yes, it should be 1.5% @graham
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By taking out the entire net DAC, you are removing too much. You only want to remove the portion of DAC associated with the cancellations which is the difference between net and gross
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This question is a carbon copy of the LRC example provided by the CAS. 1) You need to account for the fact there there are expected cancellations in the future, which means you have too much DAC if these cancellations are not accounted for. 2) My …
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Let's break it down Unexpired coverage for insurance contracts issued (PAA) = (LRC excl LC + unamortized insurance acquisition CFs + prem receivable) X ELR + costs Unexpired coverage for insurance contracts issued (PAA) = (UEP - DAC + DAC + pr…
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All the examples above are possible approaches to determining a risk adjustment for reinsurance
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I still think it would be good to know the 3 principles related to grouping contracts together
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Correct
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Yeap, that is how I would view it too
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Let's say you measure warranty using the GMA approach and personal auto using the PAA approach. The AIC for warranty would go to column (74) and the AIC for personal auto would go into column (72). The method of arriving at the answer, is the same f…
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Yup, benny is right - Tbh in actual real IFRS calculations many people do not adjust the DAC for expected cancellations
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Off the top of my head, the FCT
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Yes that's correct
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I wouldn't say it now mainly reflects credit risk, but rather credit risk is one of the components into the BCAR calculation
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Yeap
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I believe this thread here is relevant: https://battleactsmain.ca/vanillaforum/discussion/963/earthquake-premium-reserve#latest
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* If both groups only have that one policy then sure. You cannot group contracts that are issued more than one year apart. * To be grouped together, contracts should be issued not more than one year apart, have the same profit profile and are simil…