2006 Exam - Question 27 b

[Yana in London]

This is a question about the maximum DPAE.

In the solution for the exam:

max DPAE = Net UPR - Net Policy Liabilities associated with UPR + Unearned commission

In our readings max DPAE is only covered in Cantin and Trahan as far as I know and there:

max DPAE = EQUP = Net UPR - Net Policy Liabilities associated with UPR - Future maintenance expenses

Am I missing something? Which one is correct? Where does the 1st definition come from or was that paper dropped?

Any thoughts are welcome!

Thanks,
Yana

[Zacktuary]

Check:

http://www.actuarialoutpost.com/actuarial_discussion_forum/showthread.php?t=163496

Have fun :)

[Yana in London]

Thanks, going with the OSFI memo definition. I would imagine that 2008 Memo should definitely supercede the 1999 paper.