graham
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Ok, I see. There might be a "reason" somewhere, but according to the CCIR annual statement instructions, the formula for Net Investment Income from Insurance Operations doesn't include all balance sheet assets and liabilities. I've made this more cl…
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Yes, you can find the complete list of assets and liabilities in Exhibits 20.10 and 20.20 of the sample quarterly statement provided in the syllabus readings. (For some reason, those exhibits aren't included in the sample annual statement.) Also,…
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This question asks you to fill in Exhibit 60.30 and you just had to know that these are calendar year values, but that might not really help you. Generally, if they are talking about AY, it should be clear, either because it's stated explicitly o…
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Q24 a(i): You raise a good point. * If you're given the tax rate then you can use the formula from the wiki that you cited above. * If you're given the total tax (and not the tax rate) then you would subtract the total tax from the total incom…
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Yes, the 2 levels of capital are minimum and supervisory. The post above is using the term "base capital" to mean the same thing as "minimum capital".
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Part of the reason this topic is confusing is that IBC.Flood is a Canadian reading whereas CAS.GovtIns is a U.S. reading. Another reason it's confusing is that the IBC.Flood reading was written in 2015 and the availability of private residential flo…
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Here's a link to a wiki page that discusses the solution. But basically my advice is to ignore the second solution. The first solution with the answer of 25% is the one I think they intended for you to do. * https://battleactsmain.ca/wiki6c/Exp…
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The solution in the examiner's report for this question was truly awful. A problem of this type also appeared in 2015.Fall Q1b. The solution there was explained a little better so take a look at it. In any case, if you get a problem like this aga…
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There is no good reason for this. The federal government has a program called DFAA or Disaster Financial Assistance Arrangements where they assist provinces and territories if a disaster (including flood) causes losses in excess of resources. (Of co…
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Lol. That's an A+ memory trick! It made me laugh which means I will remember it. I'm going to put this directly in the wiki and the BattleCard quiz. Thanks! Slay the beast!
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Nice! I like how you made it spell CAP or CAPS. I have linked to your post from the wiki. Thx!
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I see what you're saying: If you have $100 in reserves that's "lying around" and $20 in assets, why can't we just invest the $100? Why does the $20 in assets need to be subtracted. Well, the first rule is that accounting formulas don't always mak…
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I see what you're saying because earthquake reserves is listed as a component of category A capital. So if earthquake reserves go down, you might think capital available would go down also. But that isn't quite what the question was asking. The w…
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That's a good point. I reread the example in the source text but it doesn't say definitively that "no action" is acceptable even if the event is not judged to be material by the company's actuary. If there's any doubt at all, the safest course of ac…
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Let me address your last question first about the calculation of the investment yield and investment income: Usually in excess (deficiency) ratio problems, the exam problem provides the investment yield as given information, but in this problem t…
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Agri-insurance in Canada is non-profit and the goal is to charge risk-based rates that also include an uncertainty load (or risk margin) and a self-sustainability load. This is to ensure the program maintains a surplus. A surplus is basically money …
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Yes, I forgot to mention that. Thanks.
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If I understand your question correctly, you want to know why the formulas provided for column (10) of the net commissions exhibit make sense. (In other words, you aren't asking about a specific exam problem.) Your explanation of net and unearned…
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The U.S. system is confusing because it's true that the government sets the rates, but according to the way their National Flood Insurance Program is set up, the rates should be risk-based. That's the reason for using FIRMs. Those maps will tell you…
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Yes, both methods should be valid based on the solution provided in the examiner's report. Below is the timing risk calculation using the method from the paper. You don't get exactly the same answer, but it's very close. (My simpler solution, based …
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Very observant - thanks for finding that! It shouldn't effect how you solve the problem but I fixed the formula and generated 8 new random problems. If you still want to see the previous version of these problems, let me know. (P.S. I gave you a sho…
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I see you are going through the examiner's report solutions very carefully! Side Note: Going through the old exam problems very thoroughly is a great way to study! By the time you get to the actual exam, I highly recommend you know the answers to…
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Yup, correct!
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The solution to this exam problem follows the standard formulas for calculating premium liabilities except you use PV (Present Value) instead of APV (Actuarial Present Value.) This is because, as you said, for the MCT ratio you should exclude PfADs.…
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Sorry about that. It's fixed. Thank for letting me know. (You might have to clear your cache or restart your browser if your browser cached the broken link.)
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I'm sure the CAS would never make you memorize pages of arbitrary and useless information. :-) Thanks for your post. I've linked to it in the "Study Tips" section of CIA.DCAT here: * https://battleactsmain.ca/wiki6c/CIA.DCAT#Study_Tips
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Sorry, I was looking at the solution for part (a). You make a very good point about the UPR calculation in part (b). I checked your investment return of 3.5% and I got the same thing: * CY 2014 return * = 1855 / avg(0, 105986) * = 3.5% …
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What numbers are you using when you multiply by 3.5% In the solution, all of the values being multiplied by 3% are quantities from 2017, so that's ok. They're looking at investment income generated from money that's "lying around" during CY 2017 …
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Ok, agreed. Good luck on the exam.
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There was a similar question recently. Check this post to see if it answers your question: * https://www.battleactsmain.ca/vanillaforum/discussion/comment/737#Comment_737