Difference between revisions of "Excess (Deficiency) Problems"
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| Line 4: | Line 4: | ||
|- | |- | ||
| − | || undiscounted liabilities at Dec 31, 2021 for AYs 2021 & prior | + | || undiscounted liabilities at Dec 31, '''2021''' for AYs 2021 & prior |
|| $100 | || $100 | ||
| Line 12: | Line 12: | ||
|- | |- | ||
| − | || undiscounted liabilities at Dec 31, | + | || undiscounted liabilities at Dec 31, '''2022''' for AYs 2021 & prior |
|| $70 | || $70 | ||
| Line 28: | Line 28: | ||
|- | |- | ||
| − | || undiscounted liabilities at Dec 31, 2021 for AYs 2021 & prior | + | || undiscounted liabilities at Dec 31, '''2021''' for AYs 2021 & prior |
|| $100 | || $100 | ||
| Line 36: | Line 36: | ||
|- | |- | ||
| − | || undiscounted liabilities at Dec 31, | + | || undiscounted liabilities at Dec 31, '''2022''' for AYs 2021 & prior |
|| $73 | || $73 | ||
| Line 43: | Line 43: | ||
:* excess (deficiency) | :* excess (deficiency) | ||
:: = 100 - 30 - 73 | :: = 100 - 30 - 73 | ||
| − | :: = 3 | + | :: = -3 |
| − | :: → the actuary's prior estimate of the liabilities was | + | :: → the actuary's prior estimate of the liabilities was deficient by $3 ''(as measured against the latest available information)'' |
Latest revision as of 23:09, 22 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, 2022 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, 2022 for AYs 2021 & prior $73
- excess (deficiency)
- = 100 - 30 - 73
- = -3
- → the actuary's prior estimate of the liabilities was deficient by $3 (as measured against the latest available information)
