Fisher.CaseStudy — BattleActs Exam 8 Forum

Fall 2014 17b

zachpoole — Sun, 24 Oct 2021 14:28:53 +0000

Is the solution in the examiner's report missing the expected per-occurrence excess losses in the basic premium calculation? I.e. shouldn't there be a "+0.214*1.1" in the formula?

F2016#16a

xlto22 — Wed, 29 May 2024 01:33:49 +0000

for the expiring pol, since entry ratio = 1 is derived from using agg ded of $300K, why didn't we use the corresponding charge% of 0.365 from table M? Similarly, for Option 1. Thank you!

Fall 2015 #18

river — Sun, 12 Sep 2021 21:27:04 +0000

In Sample answer 2 for this question, I don't understand why a Table M is being built instead of a Table L where phi(2.0) is k=0.5?

Step 10

stratthixx — Tue, 10 Aug 2021 00:30:30 +0000

Is there a way to show the following formulas are equivalent?

BasicPrem.=(ExpectedPer-occurrenceexcessloss+netins.charge)⋅(c+UWProfit%)+Fixedexp

b = e – E(c – 1) + cI

2014.Fall 19 a

stratthixx — Tue, 10 Aug 2021 00:51:01 +0000

What is an ELPPF?

Fall 2014 17b

mago — Sat, 02 Oct 2021 17:59:24 +0000

The wiki has the following balance equations:

How do we then end up with these solutions that incorporate both T and Ê? Should I be memorizing these balance equations instead?

Step 5

jmoore13 — Tue, 01 Aug 2023 15:35:47 +0000

In the Step 5 wiki question, why is B + CL called the "net deductible premium"? I thought there wasn't a deductible since the insurer is paying all losses (B has XS and L has limited) in the premium. Thanks in advance!

step 3 Note

emelnd — Tue, 11 Oct 2022 20:11:00 +0000

We could have instead compared projected ultimate losses at the cost level of the prospective policy period (i.e. developed and trended actual reported losses) to three-years worth of expected ultimate losses for the prospective policy period.

Fall 2016 #15

jmoore13 — Thu, 06 Oct 2022 21:27:30 +0000

In part a sample 3, why is the credit risk load a % of standard prem? I would have expected it to be a % of expected limited loss since the credit risk is for < deductible on Large Deductible since the insurer pays it first then seeks reimbursement.

Memorization Question

jmoore13 — Sat, 01 Oct 2022 16:29:34 +0000

On Step 1 in the case study and in some of the other readings, the formulas for E(X) and Var(X) are used (Case study is lognormal, I think I saw Pareto somewhere else). Should we be memorizing the distribution formulas like those or will we usually be given them? If we should memorize, which distributions do you think we should memorize E(X) and Var(X) for?

Thanks!

2014 17 a

ActLax9 — Thu, 29 Sep 2022 15:39:23 +0000

A key assumption here I assume is that the expense portion of 20% includes ALAE, is that correct? Which is why we do not need to multiply the expected loss by the loss conversation factor?

Are there any tips to know when this is the case? I certainly get tripped up here.

Fall 2014 #19

river — Sun, 12 Sep 2021 20:39:01 +0000

Why is it that for a LDD policy, the ULAE AND the Loss based assessment is included in the "LAE %" in the formula, but for the Excess Premium policy, only the ULAE is included in the "LAE %" in the formula? i.e. in Part a) we have both 7% and 5% applied to the 900k, but in part b) we have only the 7% ULAE applied to the 900k.