graham
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Unregistered reinsurance for insurance risk: There are no examples in the source text to illustrate this but my assumption is that if you're given 70.60, you would need to check that the value for LOC is within the prescribed limits and cap the L…
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Yes, that's correct. I've adjusted presentation to clarify that. Thx!
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Yes, I assume some people said it was an error for claims and premium liabilities MfADs to be different. If you read through the scenario provided in the question, it is stated that there were some differences in MfADs between claims and premium lia…
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Most exhibits in the annual statement are calendar year. In particular, everything on the balance sheet (page 20.10 for assets, page 20.20 for liabilities) is calendar year. Same for the income statement, page 20.30. Page 60.40 are 60.41 have acc…
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For the event dates in the BattleCards, I assume you're referring to quiz 1, so that would be "calculation date" and "report date"? I would say yes, you need to memorize them. I doubt an exam question would ask you for these definitions but you have…
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Yes, MfADs for premium and claim liabilities will be different in general. Here's an excerpt from the CSOP: This is one of those details from the CSOP that I don't think it's realistic to try to memorize however. The best strategy for this pa…
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That's correct. I agree it can be confusing because the exam question (or the 60.41 exhibit) doesn't label the years as calendar or accident.
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I'm not a lawyer but the way I interpreted that is as follows: * a judicial policy directive is something that has been deemed good policy and should generally be followed in making a decision, but it doesn't have to be followed * rule of law …
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You're correct that sometimes direct and gross are used to mean the same thing, although technically they are not the same if there is non-zero assumed business. In this context, the 3 different "types" of losses are: * direct, assumed, ceded …
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You're given the values for Total Investments in the top box (20.10 Assets). It just happens to be the same as the unpaid amount because in this scenario, there are no other invested assets. You do earn investment income on cash, bonds, common share…
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Your interpretation of when the reinstatement premium is due is not correct. This premium is due when paid losses by the primary insurer reach the attachment point. Now, the attachment point is 20% of gross earned premium or $90,000. That means as s…
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Ok, I see. This question has been asked multiple times so I usually only include in the quiz the most recent exam problem where it was asked. Otherwise, the quizzes would have a lot of duplicate questions. You can check whether it's outdated by u…
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Unfortunately, the MSA source text (only available in print form through the study kit) does not specify whether only realized gains should be subtracted or both realized and unrealized gains. All it says is "excluding gains". Note however that u…
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I'm glad you asked because this is a common mistake people make when answering questions from the earthquake reading. There are actually 2 different questions that can be asked but they sound very similar: * describe the 5 key principles for ma…
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If you're asking whether you have to discount the maintenance expenses, the source text says that discounting maintenance expenses is not material. You do have to include the maintenance expenses in the overall calculation however. Note that the …
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I think the intent is to provide communication and continuity from one AA to the next, but there is nothing compelling the previous AA to submit a report. As an example, if the previous AA was fired, they might be unlikely to comply with the request…
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Yes, that's the formula given in the official IFRS 17 document that I linked to in the wiki for background information. Here's the direct link to that official document: * https://ifrs.org/content/dam/ifrs/project/insurance-contracts/ifrs-stand…
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You're welcome!
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I completely understand your question because if "net unpaid claims discounted" means APV, then how would you describe PV in words? I guess you would have to say "net unpaid claims discounted without PfADs". Note also that in the examiner's report c…
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You're welcome!
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Probably not. The reading on premium liabilities was different in 2014 and while they could try to ask a similar type of question (where you have to back-solve for the unknown loss ratio) I think it's pretty safe to to ignore this question when you'…
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My apologies for changing the presentation in the web-based problem for foreign exchange risk in the market risk problem. I realize that's irritating and frustrating. Here's my chain of reasoning. The answer in the examiner's report for the 2018 …
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If you're talking about part (a), you don't actually need the separate value for realized gains because it's already included in Net Investment Income. For others reading this post, here's the section of the quarterly return I assume you're referrin…
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There is a step-by-step method to get the answer here. We're given the following BCAR values at different Var levels for Scenario 1: * 73.1, 60.7, 55.6, 53.9 You have to compare these 4 numbers to the cells in the top row of the table, whic…
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Yes, I did forget to change the formula in the answer key. Thank you for letting me know. It's fixed.
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Investment income as a topic is still on the syllabus. The thing that seems to have been deleted is the formula for "Investment Income from Insurance Operations". I have contacted the CAS Exam 6-Canada committee twice for clarification but they have…
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Yup, I forgot to add this one. Thx! (P.S. If you or anyone else can think of a better memory trick for this, let me know.)
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Sorry, I've edited the BattleCard to make it more clear. Take a look and if it still isn't clear, please let me know.
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The removal of a competitor could have many different effects so as you said, the effect could be negative if new business is worse. But I think all they mean here is that eliminating a competitor is generally good for companies that remain because …
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In the United States, individuals have 2 options for purchasing flood insurance: * private insurance (which is purchased & serviced privately but underwritten by the private insurer.) * government insurance (which is purchased and serviced…