graham
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Question 6: * The compensation fund is funded by annual levies on solvent insurers and is used by PACICC to reimburse policyholders if an insurer goes bankrupt. * There is debate on how much money needs to be in the compensation fund but that …
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Question 3: * The source text doesn't provide any further information on those topics and you would not need to know anything more detailed for the exam. Check these 2 exams problems to see the level of detail you need to know: * https://bat…
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I have linked to this from the wiki. Thx!
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The main problem in this section shows how to do that calculation: * https://battleactsmain.ca/wiki6c/CCIR.ARinstr#Alphabet_City There is also a link within that section to an archived article that explains how the yield can calculated if i…
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Here's a link to the solution for that problem using the latest method: * https://battleactsmain.ca/vanillaforum/discussion/373/spring-2016-13 I don't quite understand your first question: "where on the syllabus does the calculation of port…
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Here's what I get using growth = 25%
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Question 1: * Short-term price competition means lowering prices temporarily to undercut smaller competitors and drive them from the market. Once competitors are gone, the remaining insurers can raise rates with less fear of losing business. Th…
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You can get the details for Flood Re and the UK flood insurance program in quiz 2 of the wiki article IBC.Flood2015. Another nice summary of Flood Re is available at this external website: * https://floodre.co.uk/how-flood-re-works/
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(Sorry, I had this in my drafts from a few days ago but forgot to post.) Oh gosh, no. You don't have to memorize those dates. The exam question may give you a scenario similar to one of the text examples, but they would also give you the relevant…
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The limit is on LOC but they don't provide that in the version of the exhibit in the exam problem. They only provide the Total reinsurance collateral so you can't test from the given information whether LOC is outside the permitted range. Here is an…
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If a company has a lax policy on harassment, and a manager turns a blind eye to reported harassment by an employee he manages, then all 3 entities (company, manager, and harassing employee) have contributed in different ways to the harassment. The p…
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These legal cases are always a bit tricky because there are likely hundreds of pages of documents containing the details. The key fact here however is that insurance, by it's nature, always operates within a single province. It doesn't matter if the…
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Hi @olidude3121 I'm starting with the 2 questions that I think are the most important: Question 4: * You can use the link below to see a BattleCard listing of past exam problems from 2019.Fall. Problems that contain an orange highlight ar…
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Even though we have a decision tree to guide our decision, there is no precise formula so I think the best way to understand the subsequent events topic is to follow the examples as given in the source text. That's all you'll have to do for the exam…
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I believe you are correct. If the the event is not material, you shouldn't have to do anything (usually). One exception would be if there was a significant event like a hurricane and even if your company had no exposure, you should probably state th…
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Sorry, IBC Flood 2015 and my wiki article IBC.Flood2016 refer to the same syllabus reading. The source text is dated 2015 but it became part of the Exam 6C syllabus in the Fall of 2016. That's why I used "2016" to name the wiki page. But when the…
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The definitions provided are from the source text but they require some interpretation in a practical situation. A solvency scenario is suggested to fall between the 95th and 99th percentile in the loss distribution. A going-concern scenario is s…
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The unearned premium is invested also, but it isn't part of the excess/deficiency calculation. Since the excess/deficiency ratio is for assessing the adequacy of reserves, we only count investment from unpaid claims for that.
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Yes, that's a good point, thanks. I have now edited the page but left the link to the explanation and mentioned it's from an outdated reading. Sorry you lost time tracking that down. It should be clearer now.
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I agree it can be confusing. Overall, my advice here is make sure you can apply the formulas given in the wiki article to calculate DPAE/PDR. If the result is positive, then we call the value DPAE and it's an asset. If the result if negative, we cal…
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This exam question was ambiguous. Sample answer 2 in the examiner's report said it is not a subsequent event, but sample answer 3 said it is. My interpretation is that the event was the accident so the event date is Dec 3. But the definition of s…
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First question: Use gross UEP. See the "Special BattleActs Tip" here: * https://battleactsmain.ca/wiki6c/CIA.PrLiabs#Calculating_APV Second question: The statement about facility is just to make the answer complete. I'm not sure if the grad…
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This refers to a provision in a reinsurance contract that allows the final premium to swing up or down depending on the insured's actual loss ratio. This is covered more in a different reinsurance wiki article here: * https://battleactsmain.ca/…
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Note that this was also an exam question and you can see the offical CAS question and answer by clicking the yellow "E" in the "Section" column of the BattleCard. Anyway, the question is asking for examples of "risk-limiting" features in a reinsu…
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No, you must pick the 96th percentile for that question. It isn't as clearly stated in this new FCT reading as it was in the old DCAT reading, but a plausible adverse scenario is one that falls between the 95th and 99th percentile. It's adverse if i…
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If the province has a pure no-fault system, then you cannot sue. DCPD is not actually considered 3rd party liability. Here's a web page that explains it pretty well (just scroll down by about 1 page to get to the DCPD part): * https://ratehub.c…
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Property damage versus DCPD: * "Normal" property damage is a liability coverage and covers damage to the other person's car if you were the at-fault driver. * Direct compensation property damage (DCPD) is when your insurer pays you to have y…
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Question 1: Yes, that's actually how I think think about the difference myself. The reason is that for claims liabilities, your starting point (for the most recent AY) is age 12 months, but for premium liabilities, the starting point is age 0 mon…
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I suppose we don't know for sure how each insurer is going to deal with the removal of the cap. The key fact is that now there is the possibility for claims reserved the prior year to increase so the entity could possibly be different on the CalcDt …
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I think you're correct right up until your final decision. The example in the text presents 2 possible conclusions: * If the IBNR is sufficient to absorb the change then this would be considered a normal part of business and it is not even nece…