graham
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I edited the last 2 BattleCards in quiz 4 to make it more clear. The idea behind cost-sharing is that premiums are shared. Take a look at the edited BattleCards and if you still have questions, please let me know.
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Production insurance is voluntary. If the rates go up and down by large amounts from year to year, then a farmer who is at low risk for losses might decide not to buy insurance when the price is high. The only farmers who would buy insurance when…
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Let me start my answer by saying there was no example in the source text for how to actually calculate a premium using these concepts. I'm now thinking it's unlikely you'd be asked a calculation question on this, but here's the answer to your questi…
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Yes, and you can see from past exam questions that they really do ask for small details.
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Hi Wilson, The short answer is that I don't think you need to order the study kit. I went through the study kit readings and pulled out everything that would make a good exam question. If you know all the facts in the BattleCards and are comforta…
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No problem!
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You're welcome Tony!
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Yes, you're correct. See footnote 6a to the BattleTable in the CIA.PrLiabs wiki article. Here's the link to that BattleTable: * https://battleactsmain.ca/wiki6c/CIA.PrLiabs#BattleTable
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Hi Tony, The details of cat reinsurance are not covered in the syllabus reading so there isn't too much I can say about it. The specific coverage for non-cat reinsurance depends on how the reinsurance contract is written but it likely would no…
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You have to be careful about gross and net. In your formulas above, you're trying to apply the cession% to net values, but that's not correct. The cession% is applied to gross values. According to the examiner's report solution. * NEP = (GWP + …
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Nice! (I've linked to it from the wiki.) P.S. Stay safe in the forest!
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Hi Wilson, What happened is this: I had marked the BattleCards for the 2016 version of the flood reading as "outdated" because I thought the 2019 reading was replacing the 2016 version. But when I put the 2016 version back into the wiki, I had to…
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Yes, "levy" means something different! Thx!
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Hi Wilson, I don't think the reading is specifically recommending any of the 3 options. The option a country chooses depends on the goals they are trying to achieve. Objectively, option 3 is the best (according to the colour-coded chart) but ther…
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Awesome! (I have linked to your hint from the wiki.)
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Yes, that's correct. I've added a boxed note to that section to clarify: * https://battleactsmain.ca/wiki6c/Dutil.FA#A_Game_Insurers_Play
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Right, there is no "gross" or "net" for maintenance expenses. Inward ceded would be "assumed" and outward ceded would be "ceded". (On the exam, it's probably safer to use the terms assumed and ceded rather than inward and outward.)
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Hello @ibsy, I see what you mean. In 2017.Spring Q13ab, other income wasn't shown in the formula for NI.preTax because other income (also called other revenue) wasn't given in the problem. My solution in the MSA.Ratios wiki article pretty much ju…
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The source text states that maintenance expenses are a percentage of gross unearned premium. This is demonstrated in this recent exam problem: * https://battleactsmain.ca/pdf/Exam_(2019_1-Spring)/(2019_1-Spring)_(14)_v2.pdf Regarding reinsu…
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Yup!
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Note that the term is "swing-rated" (not swing-related.) It's basically a specific type of retrospectively rated policy. This concept is discussed more in the reinsurance reading by Freihaut. Here's a link to the relevant section of the wiki article…
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Yes, that's how I think of category 1 - individual drivers with bad driving records. I took the "non-pool" adjective to mean vehicles that are not in a Risk-Sharing Pool (RSP.) And "non-fleet", as you said, means individual vehicles that are not …
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According to the examiner's report solution for 2015.Fall Q7: * https://battleactsmain.ca/pdf/Exam_(2015_2-Fall)/(2015_2-Fall)_(07).pdf the formula for the Participation Ratio is: * PR = Co.EE(not ceded) / Prov.EE(not ceded) This i…
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The length of the payment pattern affects how long the insurer may keep the "money" it has set aside for claim payments. If a payment is made earlier than expected, then there is less time for that money to earn investment income so the insurer's in…
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Commutation and runoff aren't the same thing. A line of business could be in runoff but not commuted to a reinsurer. Commutation agreements can be complicated and may have extra clauses that govern the nature of the arrangement between the primar…
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Yes, that's correct. The list I gave in the wiki wasn't exhaustive because normally an exam question would ask only for 3-4 items. Examples of exam questions are: * https://battleactsmain.ca/pdf/Exam_(2017_2-Fall)/(2017_2-Fall)_(01).pdf * http…
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Update: I believe the original version was correct. It should be WE (Written Exposures) rather than EE (Earned Exposures). The source text uses the term "car-years" instead of exposures but the terms are equivalent.
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Yes, it's the same thing. There was an old exam question that asked you to list different types of adjustments to historical probable yields but the answers given in the examiner's report are better described as the triggers. And here's the C…
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You're welcome!
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Hi Wilson, Unfortunately, the source text for MSA Ratios is not available online. You have to order the study kit for Exam 6-Canada from the CAS website. The study kit has print versions of readings that are not available online. They will mail t…