Staff-T1
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For the grouping, what it is saying is you estimate ceded as either one of options 2 or 3, and then you separately calculate the RA for that. You do NOT cede the underlying RA directly Your RA is somewhat proportional to your ARC/LRC. As you decr…
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Ah yes it should be this https://battleactsmain.ca/wiki6c/Govt.FloodSolutions
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Yes, good catch - CU_qtr and CU_beg are the same thing so we should be consistent with the notation. @graham
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Well, no - what is calculated is the EQ capital required. You are required to deduct EPR from capital available, to the extent it is not used to cover EQ risk exposure. I'm not sure what you mean by EQ capital available apart from what I just covere…
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LC is amortize as coverage is provided, similar to the CSM - For a policy with LC of 1000 and coverage period of a year, at T = 0.25, LC = 750, T = 0.5, LC = 500 and so on. If you have an initial LC, you take a 100 dollar loss on the income state…
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Not really - the concept of having a "value" and agreeing to that amount in advance does not apply to life insurance. The purpose of a valued policy is to determine in advance the payout of an object that is difficult to assign a dollar amount to. Y…
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The PAA and GMA methods are the same for LIC
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Informed doesn't mean that action was taken. But yes, the best answer would be to say inform stakeholders, but do not change the report
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It means that it doesn't change the state of the insurer before the event happened. Not sure where you are seeing the second point?
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what detailed calculations are you referring to? The quiz provides the sample calculations
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IBC.floodsolutions - The flood papers have changed frequently so this section is where the questions for the papers are posted
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in the MCT paper, they are actually trying to back out the old premium liabilities, it is NOT the PAA estimate of the LRC. This is what will be used to determine the estimate of insurance risk, so you are comparing two different things
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Need some additional context here (exam question)
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It's more of before you can obtain a license, you need to be incorporated - And where you are incorporated, determines where you are able to obtain a license. They are all linked
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No
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why do you think there is a contradiction? The actuaries did not change the report
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According to SSAP 62, any reinsurance contracts that have prescribed payment patterns do not meet the risk transfer requirements. In order to have risk transfer in a reinsurance contract, there must be timing risk as well as underwriting risk. Pre…
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Yes it is on the syllabus
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Normally "reflect" is for events that are discovered before the report date while "amend" is for things that are discovered after the report date. For example, if you discover a subsequent event in the AAR before Feb 28 such as late reporting of cla…
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The Maximum loss in the question here is 1M?
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Maximum loss is 800 - 600 (retention) = 200 100 is the premium
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The battlecards are not meant to be completely comprehensive, but to provide quick memorization help.
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Yes, but we are talking specifically about LRC here. The LIC is its own thing. As I mentioned above, the decrease in LRC would be off-setted by an increase in ISE leading to a net position of 0, all things equal. Thus, at time 0 you have a net lo…
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yeah just change DCAT to FCT. It is usually 3-5 years for the projection period
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End of year CFs are measured at times 0.5,1.5 and 2.5. This is because we are calculating the unwind of the discount. For example, just looking at the claim incurred at time 0.5, you will have half a year of discounting at time 0. Thus, when you unw…
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It is Intra-vires for Ontario, ultra-vires for the federal government
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Yes at time 0 it would be 0. But, the moment premium is received there is an imbalance in that PV (premiums) is now < PV (Losses) which leads to a positive LRC. PAA at time 0 = Premiums Received (0) - Earned Premium(0) - DAC (0) = 0 PAA is …
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CSM would normally be positive, EXCEPT for reinsurance held where it can be negative, reflecting a net cost of reinsurance. An onerous contract will be recognized at the earlier of initial recognition or inception. In this case, if a contract is …
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1) No, you don't see the RA of the underlying LRC. You would separately calculate a different RA for your ARC which reflects the difference in the capital position of the entity before and after reinsurance 2) Whoops sorry it is a typo. I meant t…
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at the bottom: https://www.casact.org/exam/exam-6c-regulation-and-financial-reportingcanada