graham
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This exam problem had a typo that made the answer in the examiner's report confusing. The examiner's report says near the bottom that: * Regrettably, there was a typographical error in this part of the question; the calculation year was missta…
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Yes, but they don't give you the value for LOC (Letters of Credit). So you can calculate the limit on LOC but you can't then cap LOC because you don't know what it is. They only give you the total collateral, which includes LOC but the actual LOC co…
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The MfADs and PfADs are calculated separately and shown in the appointed actuary's report in the Unpaid Claims and Loss Ratio Analysis Exhibit (030). This is from the source text "OSFI Memorandum" and the wiki article is OSFI.MemoAA. Here's the link…
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If I understand your question correctly, for CIA current practice, we have an explicit MfAD for interest rate (discount rate.) For IFRS 17, an allowance for interest rate risk is implicit in the discount rate selection. There are different methods f…
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I've linked to your post from the wiki. Thx!
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If a province makes a law that conflicts with a federal law then the federal law takes precedence. (At least regarding federally incorporated insurance companies.)
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For AY 2014 on Dec 31, 2015, we are at age 24 with 3500 remaining to be paid. The payment pattern 10/60/100 indicates that everything will be paid by 36 months, which is the full 3500. Or you can explicitly write out the formula for what will be …
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You should check if they give you the components you need to test for the limit, like in the following exam problem: * https://battleactsmain.ca/pdf/Exam_(2017_2-Fall)/(2017_2-Fall)_(20).pdf In that problem, they provide you with the necess…
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Then it would pass the risk transfer test. The value "10" was chosen for consistency with the the 1% combined threshold in the ERD rule, but the ERD rule is probably a better test because it allows for either the frequency or severity of loss to be …
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No. The DCAT reading was removed so you don't need to know anything about that.
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Ok, I see what you mean. I was referring to the NCOR formula in the CCIR Annual Statement Instructions. The 2-year COR is the same as the 1-year COR except you use 2 years of data instead of just 1 year. I've added a link in the MSA Ratios formul…
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I see what you mean but it turns out that for 2014S Q15, the "gross case reserve" is the same as "ultimate - paid". (It was just a coincidence.) 2011: * gross case reserve = 1,025 * ultimate - paid = 2,050 - 1,025 = 1,025 2012: * g…
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"Prior approval" rate filings are usually more complicated (more changes, more documentation required) so it takes more time and resources for a company to complete and for a regulator to review.
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For b.iv: * Yes, an increase in interest rates may very well benefit a company, but the question was trying to see if you could come up with something less obvious. You had to come up with a scenario where an increase could adversely affect the…
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Yes, because the written premium is given as 10,000 and policies are written uniformly through out the year starting on Jan 1, so by the end of the year, half the written premium will have been earned and half will remain unearned.
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Actually, I forgot about the answer I gave that you linked to above. When I answered that, I had gone back to the Excel exhibits and noticed that sample answer 2 was more consistent with the source text (versus sample answer 1.) Note that the answer…
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Yes, that's a direct quote from the source text.
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Yes, that's the reason. Further down is the balance sheet where: * green = items you're given in the problem * yellow = items you're not given * red = the unknown you have to find You would have to have all the yellow items to solve the p…
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That seems logical but I can't say with 100% certainty. It isn't discussed in the syllabus readings so you shouldn't have to know any details for the exam. You just have to know where it appears on the balance sheet (equity section) and what it's no…
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OCI: Other comprehensive income is an accounting item that includes unrealized revenues, expenses, gains, and losses. AOCI: Accumulated other comprehensive income is displayed on the "Liabilities and Equity" side of the balance sheet as shown bel…
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There have been a few forum discussions on this that I've linked to below. The short answer is that unfortunately this is not explained clearly in the source texts. In the 2019.Spring Q18 problem, they are indeed treating "capital and surplus" as…
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Great!
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Before I try to answer that, take a look at this old exam problem (from a totally different reading) about the differences between IRFS17 and current CIA methods. It's much easier to understand than what's given in this IFRS17 reading. Anyway, I'…
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I don't think there is one. It would be costly and inefficient.
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Do you mean a public insurance scheme that's administered by private insurers? If so, one benefit is that private insurers already have the infrastructure for underwriting and claims handling. This relieves a public entity from creating the infrastr…
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Unfortunately, probably not in all cases. The issue is that the ICA 47 source text is from 2017 but the FCT source text is from 2019. The exam committee should really have updated both readings at the same time to avoid inconsistencies like this. …
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Yup. If you have study time leftover before the exam, you can go back to it, but that rarely happens for Exam 6! I can't guarantee they won't ask for those details, but it seems unlikely based on my reading of the syllabus. This is an example of …
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Yup, that's how I interpreted it.
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Your question is a variation on a very common question about calculating excess/deficiency ratios. You've probably seen this but for anyone else reading this post, here's a link to the solution to this problem provided in the wiki: * https://ba…
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If you're calculating DPAE in the normal way, the ELR comes up in the first step when you calculate PV: * PV = [ ( UPR - FutRe ) x ELR + ULAE ] x PVfctr Then you apply MfADs to get APV and feed that into the formula for PolLiabs(UPR) (also …