Difference between revisions of "Excess (Deficiency) Problems"
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(Created page with "'''Problem 1''': Calculate and interpret the excess (deficiency). :{| class='wikitable' |- || undiscounted liabilities at Dec 31, 2021 for AYs 2021 & prior || $100 |- || pa...") |
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| − | * excess (deficiency) | + | :* excess (deficiency) |
| − | : = 100 - 30 - 70 | + | :: = 100 - 30 - 70 |
| − | : = 0 | + | :: = 0 |
| − | : → there is neither an excess nor a deficiency - the actuary's prior estimate of the liabilities was accurate ''(as measured against the latest available information)'' | + | :: → there is neither an excess nor a deficiency - the actuary's prior estimate of the liabilities was accurate ''(as measured against the latest available information)'' |
'''Problem 2''': Calculate and interpret the excess (deficiency). | '''Problem 2''': Calculate and interpret the excess (deficiency). | ||
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| − | * excess (deficiency) | + | :* excess (deficiency) |
| − | : = 100 - 30 - 73 | + | :: = 100 - 30 - 73 |
| − | : = 3 | + | :: = 3 |
| − | : → the actuary's prior estimate of the liabilities was deficiency by $3 ''(as measured against the latest available information)'' | + | :: → the actuary's prior estimate of the liabilities was deficiency by $3 ''(as measured against the latest available information)'' |
Revision as of 02:20, 13 July 2022
Problem 1: Calculate and interpret the excess (deficiency).
undiscounted liabilities at Dec 31, 2021 for AYs 2021 & prior $100 paid during CY 2022 for AYs 2021 & prior $30 undiscounted liabilities at Dec 31, 2021 for AYs 2021 & prior $70
- excess (deficiency)
- = 100 - 30 - 70
- = 0
- → there is neither an excess nor a deficiency - the actuary's prior estimate of the liabilities was accurate (as measured against the latest available information)
Problem 2: Calculate and interpret the excess (deficiency).
undiscounted liabilities at Dec 31, 2021 for AYs 2021 & prior $100 paid during CY 2022 for AYs 2021 & prior $30 undiscounted liabilities at Dec 31, 2021 for AYs 2021 & prior $73
- excess (deficiency)
- = 100 - 30 - 73
- = 3
- → the actuary's prior estimate of the liabilities was deficiency by $3 (as measured against the latest available information)
