graham
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Interesting questions. The first thing that pops into mind is the Trilogy ruling that limits the non-pecuniary compensation to an inflation-adjusted $100,000. The Trilogy ruling is discussed in the wiki here: * https://battleactsmain.ca/wiki6c/…
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The first thing I did was double-check the current simplified and regular filing guidelines since these exam questions were from 3-4 years ago. It does indeed appear that these territorial rules are still in effect for both types of filings. I ag…
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I think you might be referring to a different exam question because 2017.Fall Q15 did not refer to facility. In any case, here's a brief review of the DPAE calculation. After applying the basic formula: * DPAE = UPR - PolLiabs(UPR) + UEcomm …
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It's hard to say in general because it would depend on what other information you're given. The formula for PV assumes you've got the undiscounted loss ratio (or ELR, Expected Loss Ratio, as I've been calling it). Once you've got PV, you can calc…
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To answer mdattilo's question, the part about the U.K. model was mentioned in the old reading on flood insurance that predated the IBC reading, and exams based on that reading sometimes had question on the U.K. system. When I created the BattleActs …
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I see your point because the calculation for: * the reduction in capital required for excess collateral is in section (4.3.3.4) which is still on the syllabus. But the calculation pertains to credit risk which is in chapter 6, which isn'…
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The unearned premium amount of 5,000 is based on the written premium of 10,000 and that the exposures are written uniformly over the whole year. They just made the rough assumption that the unearned would equal half of the written. The part about…
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Interesting, thanks. I'll make a brief note in the wiki about this.
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Yes, I meant to reference Spring, not Fall. I've made the change in the wiki and also added a link to the exam problem to save you time searching for the question. P.S. We're beta-testing a new feature called BattleTables. I've inserted the Battl…
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For your first question regarding why pages 17-20 were excluded, I emailed that same question to the CAS about a year ago. All they said was that candidates are expected to know relevant material that supports the syllabus material. (Kind of a non-a…
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I assume you're referring to page 21 and/or page 30 of the study kit reading: * "Research Report - Best Practices for Actuarial Involvement in the Regulatory Oversight of Property and Casualty Insurance Rates." It definitely says that Alber…
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In the real world, this question likely wouldn't have the same answer for all situations. One approach would be to do the analysis both ways: * gross & net directly THEN ceded = gross - net * gross & ceded directly THEN net = gross - c…
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The Regal Films case was specifically mentioned in the 2018.Spring syllabus, but is not listed in the 2018.Fall syllabus. There was no explanation given. There was also a memo published on Jan 18, 2018 from: * Fran Sarrel, General Officer, S…
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I had to work out an example in detail to make sure I properly understood what was going on here. The example is available in a pdf in the CIA.MfAD wiki article in the section at the bottom where the formulas for the undiscounted and discounted loss…
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Thanks for taking the time contribute to the discussion with such a detailed comment. I've provided a link to your comment in the wiki so everyone can benefit.
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Yes, if you briefly state your assumption you should be safe. They just want to know that you understand what you're doing. As far taking into account prior or future years, that's something you wouldn't have to do because it isn't covered in the…
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I made a typo last week when I edited the javascript for that page. I've corrected it. Thanks for bringing it to my attention.
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The key point here is that if pre-tax income is less than 0, there is no tax. You only pay tax when you have a profit. In this problem, I set the result to 0 just to indicate there was no profit. You could argue it makes more sense to say the fin…
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No problem. And just to emphasize for anyone else reading this post: These E links show the question and answer together, whereas the examiner's reports have all the questions THEN all the answers. (So a particular question in the examiner's repo…
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This is answered in the green highlighted box near the bottom of the this wiki article: https://www.battleactsmain.ca/wiki6c/Boot_Camp:_Calcs_A
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Ok, this is tricky. I went back and looked at 4 old exam problems that asked you to calculate ROR: * 2017.Fall Q25b * you are given: investment operations: income * assumption: realized gains are already excluded, don't subtract for ROR …
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I looked at 2017.Spring Q13c and 2012.Fall Q21c and I agree there is an inconsistency between the CAS solutions to those problems. In both cases, the term Total Liabilities refers to (claims + premium) liabilities, but * in the 2017 problem, To…
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There is another thread in the the CIA.Accting category that may shed some light: https://www.battleactsmain.ca/vanillaforum/discussion/37/why-does-oci-htm-0-always Very briefly, AFS is treated differently in that unrealized gains/losses in as…
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Yes, I agree. It shouldn't depend on what data you're given. That's why there has been so much confusion over these questions. I just added a box with an explanation in the wiki article that I hope goes some way to resolving the issue in a more sati…
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This has been corrected. Thanks.
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Yes, those sections were excluded from the MCT reading after 2017.Spring, but are now part of the new CIA reading on Duration Considerations for P&C Insurers. I should have moved those BattleCards to this new reading instead of marking them as o…
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Yup, thanks! It has been corrected.
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That's pretty much right! One small point: I know what you mean when you say "HTM has an impact on OCI, but is not recorded", but I would be a little more careful. There really is no impact to OCI. If you were going to record unrealized HTM gains…
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That's a very nice interpretation. I've inserted a link to your comment in the section of the CIA.Accting wiki article that discusses these exam questions. (I've also reorganized that section to be clearer.) See... * https://www.battleactsmain.…
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That's a good question because you're asking about the reasoning behind the stated facts. * Instead of asking why OCI(HTM) = 0, let's turn this around and instead ask why OCI(AFS) ≠ 0. It would be a perfectly reasonable accounting rule simp…