Staff_J1
About
- Username
- Staff_J1
- Joined
- Visits
- 148
- Last Active
- Roles
- Administrator
Comments
-
For Capacity, think of it like the following: * A federal incorporation gives the insurer legal existence and corporate powers that extend across Canada. It has the capacity to carry on business anywhere in the country. * A provincial incorpor…
-
Might not be 100% understanding your question, but taking a step back, this is the thinking we should have. When we mean "right", I don't think it means automatic access or just guarantee to operate. As you mentioned above in the Insurance Act, it d…
-
Hello, We are currently reviewing these battlecards (whether to remove/update). We will let you know shortly on the decision and if there are any changes! Thank you,
-
Hello, yes this reading is now deleted. Thank you.
-
* Yes, it should be WP as mentioned above. Unless I am mistaken or misunderstanding your question, I don't think the exam question specifies whether it is WP or EP however. For an exam, if not clear, always state your assumption though! * I'm not s…
-
I am going to assume you are talking about Fall 2016 Question 28 as Spring 2016 Question 28 does not mention anything about the 0.5% ceded. Yes, correct that it is immaterial (only 0.5%) and yes, following the decision tree and from what the CAS …
-
Yes, the phrase “retroactively makes the company different as at the calculation date” is consistent with the definition of an adjusting event. The following can be found in page 10 of the Reading Link from CAS: "Adjusting (subsequent) events, whic…
-
I would add for the exam and relating to "actual" scenario, think of the following * With rising interest rates, Market risk through drop in market value of assets (the fixed income ones, like bonds) * Asset-liability mismatch risk, if liabili…
-
The solution's point on a decrease for both asset and liabilities are true as well as FV because 1. The fair/market value of fixed-income assets (bonds for example) are reduced due to their discounted future cash flows now being worth less (due to …
-
As mentioned from the Wiki, we can invoke Method 1 to conclude that there is self-evident risk transfer under this contract for these reasons: 1. The potential loss to the reinsurer is much larger than the premium (which is only 5M) for the coverag…
-
When we calculate claim liabilities, we seem to divide the incremental change in paid amount by 1- what is paid within the first 12 months. Here we did not have to do that, is there a reason why?
-
But in the fall 2018 Q15 they do provide you with the components. UEP and O/S recoverable. Thank you
-
How would we know when to not check for the Min(LOC, (UEP + O/S Recov) x 0.15)) or if we can just use the number given. Thank you
-
Hi Graham, Also for the discount rate, we use book values of the bonds but sometimes in the question we seem to use the market value. Could you clarify thedifference between the two and when each should be used? Thank you,
-
Hi Graham, Then in the example from Fall 2018 Q15. regarding the unreg reins margin for Insurance Risk. To calculate the D, shouldn't we use LOC = 900 = Min(LOC, (UEP + O/S Recov) x 0.15)) which is less than the posted 1000 in the 70.60 exhibi…
-
Also in the question it calculates the premium deficiency to be 4687 but what does it mean why the last row? Note that there is no premium deficiency or DPAE for facility given that net unearned premium = premium liabilities
-
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
-
Hi Graham, Sometimes I feel as if in the questions they use direct and gross interchangeably. Could you comment on the difference between the two? Thank you
-
Hi Graham, Quick question. For the upcoming exam, if there were a question like this, to calculate the duration and the premium liabilities for the interest rate margin, we would not need to add in a component for maint expenses and calculate the…
-
Hi Graham, Could you explain further about the statement above? I currently understand NSP to be absolute value of Foreign assets in CAD - Foreign liabilities in CAD. But you also mention that it is the sum of the Net open long positions + the…
-
Hi Graham, Thank you for the response. Another question about the PVfctr for premium liabilities. In 2019 Spring Q14, for the PV, it seems they are using the % remaining to calculate the PV Loss, however, in 2019 Fall Q14, it seems to use the …
-
Also another question, in Fall 2019 Question 20c) for the calculation of the PV Unpaid Cat loss, for the 0.4 I am not sure how that came to be. but referring to CIA. MfAD, there needs to be an adjustment for the % paid, no? Thank you,