USTC
03-19-2008, 11:09 PM
2 questions
1. 06-7C-25 d) Describe 2 possible management response for the Increase in Social Inflation scenario.
CAS solution says
1) increase rates
2) change the mix of business
But on Page 21 of the paper, the 2 items above are listed under the "general rate of inflation" scenario instead of the "social inflation" one. So should we assume these answers can be used for any adverse scenarios under Inflation risk category?
2. 07-7c-27 b) The question clearly states that the projected -10,000 surplus is as at June 30, 2006, which is in the middle of the projection period.
CAS solution says "The actuary should make an interim evalution in this case", which sounds to me like the solution to a late discovered flaw, e.g. 06-7C-25 e).
I think the CSM's solution makes more sense in saying " The requirements apply throughout the forecast period and thus the negative surplus should not be ignored." Anybody agree?
Thanks,
USTC
:exams:
1. 06-7C-25 d) Describe 2 possible management response for the Increase in Social Inflation scenario.
CAS solution says
1) increase rates
2) change the mix of business
But on Page 21 of the paper, the 2 items above are listed under the "general rate of inflation" scenario instead of the "social inflation" one. So should we assume these answers can be used for any adverse scenarios under Inflation risk category?
2. 07-7c-27 b) The question clearly states that the projected -10,000 surplus is as at June 30, 2006, which is in the middle of the projection period.
CAS solution says "The actuary should make an interim evalution in this case", which sounds to me like the solution to a late discovered flaw, e.g. 06-7C-25 e).
I think the CSM's solution makes more sense in saying " The requirements apply throughout the forecast period and thus the negative surplus should not be ignored." Anybody agree?
Thanks,
USTC
:exams: