graham
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You are correct @suomi. My eye glossed right over "intra" and I read it as "inter". The correct statement is as you said: * " the federal government has the right to regulate inter-provincial trade, not intra-provincial trade..."
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That's right. Aggregation of reinsurance contracts held is done independently from aggregation of "regular" underlying insurance contracts. The text also goes on to say that the general principles for aggregating reinsurance contracts held into p…
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Sorry, that was a typo. It's fixed. Thanks for letting me know.
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"Directly attributable" means directly attributable to the insurance contract so those costs are amortized over the coverage period. But "non-directly attributable" acquisition expenses are not specifically tied to the contract, so it wouldn't make …
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It is all a but confusing because there isn't a clear example of the whole process from start to finish but here's how I think about it. For non-onerous contracts, the CSM is part of LRC but separate from the FCF because we have the formula: …
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The ceded premium is what the primary insurer collected to cover their own losses and expenses and that does gets passed on to the reinsurer. But the reinsurance policy itself has a cost that is potentially different from the premiums the primary in…
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Sure, * Ceded unearned premium refers to policies written by the primary insurer on a direct basis. Premium is collected by the primary insurer from the insured but if this policy is then ceded to a reinsurer, then both the premium and unearned…
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They don't give you any values for assumed or ceded premium for intra-group pooling so all you can do is assume there's isn't any intra-group pooling. The contribution to operational risk is then 0. (They give you the risk factors for intra-group…
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The good news is that it is not absolutely necessary to look at the source text for this article. It is mostly formulas and these formulas are given in the MSA.Ratios wiki article. This reading is updated every year but there is usually no change to…
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I've copied the paragraph you're referring to below: To explain their reasoning, let's consider this hypothetical example where for some unusual reason, the best estimate is very low relative to the size of the company: * Suppose the bes…
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Good Morning @thesuperactuary! I've copied and highlighted the piece of the examiner's report solution that's incorrect: It's incorrect because they did the comparison backwards. The limit on category C shares is 2,380 but the actual value…
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Regarding RSP participation ratios, here is the relevant paragraph from the source text:
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Yes, thx. I've marked it as such.
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When I read it this morning, I had in mind % of losses because it was related to some other work I was doing yesterday on ULAE allocation for a completely different purpose. I actually think either should be acceptable for the purposes of the exam.
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I believe the question writers intended the 2 tables of information provided about page 80.10 to be separate from the table of "Other Information". So parts (a) and (b) of this question could have been 2 completely separate questions. The only conne…
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This was a scenario from the source text so if you get this question on the exam, I would give the answer from the practice exam because that matches the action recommended in the source text. Advice for the exam: Don't overthink your answers. Th…
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I think what you wrote it accurate. BCAR.Cat and earthquake risk management might not be exactly the same, but pretty close. I think if you realize that an exam question is referring to the BCAR.Cat reading, you might get away with putting the ea…
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I think I may have caused confusion here because I wasn't careful about whether we were talking about loss sharing or transfer limits. I've gone back and pulled the relevant paragraphs from the text. For loss sharing, the source text says to use …
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Yes, that's my interpretation. (They are referring to line 39 on page 20.30.) There is another term labelled "Gains (Losses) from FVO or FVTPL" but it seems we can assume this is equal to 0 also. Maybe when the problem said "no gains" they meant bo…
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I've copied my solution to this problem below. See if that makes more sense. Note that: * TMF = Total Margin Factor * = (req'd margin) x (target cap to req'd ratio) x (risk cost of capital) For the PV without margin, the numbers in the row…
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Another creative memory trick! I will link to it.
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Yes, CI = NI + OCI. You can see this from page 20.42 of the sample quarterly statement. Also, "Other Income" is part of Net Income, which you can see from page 20.30 in the sample quarterly statement. (So "other income" and OCI are distinct terms.)
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From the answer in the examiner's report, I think when they said "no investment income gains", they meant there were no realized gains. The formula for ROR is: * ( U/W.Inc - CapGains + InvInc + IncFrmSubs ) / GWP So CapGains = 0 and also In…
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Yep. You can ignore it.
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I had similar queries about this question and I emailed the 6C exam committee last year for clarification but I didn't think the answer I got back was entirely satisfactory. This question is basically a harder version of the catastrophe scenario …
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Yes, part (b) isn't outdated but I thought it would be confusing in the BattleTable to list parts of those older questions as outdated and other parts as valid so I marked every question from the old reading as outdated. I left part (b) in the Battl…
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I think the problem with this actuary's experience at the small consulting firm is that their duties were related to ratemaking not reserving. The experience at the 2 unrelated companies should have a strong reserving component at both companies. Th…
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Yup, that is correct.
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I want to say yes because: * For IFRS 17, the interest rate risk is embedded in the best estimate, which would be NU @ i' (interest rate risk is included in the best estimate.) * Under current practice, the best estimate would not include the …
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Ok, I see what you're asking now. This problem is slightly different because normally when you calculate the APV for claims liabilities, you're given the nominal amount at age 12 months. Then you distribute that amount to the intervals 12-24, 24-36,…