So how was it?

[JOLE5646]

As compared to 2010 and 2009.

Using 2010 and 2009 as a comparison, what do you think the pass mark will be?
2010 pm was 66%; 2009 was 67%.

[herr blau]

WTF is "tied selling"?

That's all I have to say about that...

[Crinkle_Cut]

Or how can they ask for Net Investment Income from Insurance Operations for 1.5 marks, and it's provided in the table provided.

Maybe they forgot to blank out the value? Since they provided all the components. Investment Income, Realized Gains, and Investment Expenses.

[CASualty]

WTF is "tied selling"?

That's all I have to say about that...

I actually got the definition of tied selling, but I knew what it was before I ever started studying for 6C. I don't remember where it was in the syllabus (if at all?) but I'm guessing it was in the FSCO 5-year review or a similar regulation-related article.

From investopedia:

"The illegal practice of a company providing a product or service on condition the customer purchases a product from the same or related company."

[CASualty]

Or how can they ask for Net Investment Income from Insurance Operations for 1.5 marks, and it's provided in the table provided.

Maybe they forgot to blank out the value? Since they provided all the components. Investment Income, Realized Gains, and Investment Expenses.

I think I skipped that question . . . I didn't even notice! It wouldn't be the first time that they made a mistake on an exam question. If they really did give the answer, they would probably still expect you to go through all the calculations.

[Crinkle_Cut]

I think I skipped that question . . . I didn't even notice! It wouldn't be the first time that they made a mistake on an exam question. If they really did give the answer, they would probably still expect you to go through all the calculations.

Yeah, at first I just wrote $200,000. But then I couldn't justify 1.5 marks for repeating $200,000 which was posted in the table provided.

So wrote out the formula, it's values, and how I came up with $200,000.

Hope that's right....

[John Doe]

Or how can they ask for Net Investment Income from Insurance Operations for 1.5 marks, and it's provided in the table provided.

Maybe they forgot to blank out the value? Since they provided all the components. Investment Income, Realized Gains, and Investment Expenses.

Actually, investment income from insurance operations = min[IY*(A+B+C+D-E-F), NII], where A = Average net UP, B = Average UC, etc... This comes from CCIR instuctions, section VI.

That's why they asked you to calculate IY in a). The answer was lower than $200,000.

[JOLE5646]

The calculation questions were mostly brand new, never seen before types.
I knew tied selling was related to RIBO but can't remember reading about it anywhere. I hope I got a few points from bsing.
So back to my original question...what's the pass mark gonna be like? It better not be higher than 2009, a much easier exam at 67%.

[John Doe]

I just found found the definition of tied selling in the RIBO reading. It's on page 19. Yet only pages 26 to 36 were on the syllabus. I think we should appeal that question.

[JOLE5646]

I just found found the definition of tied selling in the RIBO reading. It's on page 19. Yet only pages 26 to 36 were on the syllabus. I think we should appeal that question.

How much was that question worth? 1.5 or 2? I don't mind them removing it.

[John Doe]

How much was that question worth? 1.5 or 2? I don't mind them removing it.

Only 1 point, I believe. a) and b) were both worth half a point each.

[JOLE5646]

Worst question was on EMB. And it wasn't cheap either, over 2 points I remember. Worst of all is it's not even a Canadian thing. Who cares what's going on in Europe.

[Agamemnon]

I am not sure what the pass mark will be but I can assure you one thing, that was one LONG exam and even with my frentic writing for four straight hours, I could not finish the exam and I am sure I made stupid mistakes along the way in the calculations.

What did you guys get for the MCT Question? I think I got something along 120-130%

[JOLE5646]

I am not sure what the pass mark will be but I can assure you one thing, that was one LONG exam and even with my frentic writing for four straight hours, I could not finish the exam and I am sure I made stupid mistakes along the way in the calculations.

What did you guys get for the MCT Question? I think I got something along 120-130%

Yeah that was the consensus i got from all the comments I overheard...that it was long.

I'm hoping the pass mark will be consistent with recent year's. Anything 70 and over would be unfair.

[CASualty]

How much was that question worth? 1.5 or 2? I don't mind them removing it.

How has the CAS dealt with situations like this in the past (where they ask a question based on material excluded in the syllabus)? They can't just remove the question, because that wouldn't be fair to the people who took the time to answer it. Perhaps extra points for the people who happen to get it?

[Crinkle_Cut]

I couldn't calculate Capital Available with the 10 items they gave me, lol. This one was complicated.

But I was able to calculate the 3 components of Capital Required for part b.


This exam was long. I hope the pass mark is under 70%
=(


And I vote to appeal that stupid question on tied selling. Do we need to submit multiple appeals? Or we just trusting on one person to do it?


Oh for the question regarding calculating excess deficiency. When calculating the investment income on unpaid claims from 2008-2010. I took the average of the 3 unpaid claims liability balances, multiplied it by investment rate of return, and multiplied by 2 years (to represent 2 years of investment income). Not sure if I did this right or not?!?

[Crinkle_Cut]

How has the CAS dealt with situations like this in the past (where they ask a question based on material excluded in the syllabus)? They can't just remove the question, because that wouldn't be fair to the people who took the time to answer it. Perhaps extra points for the people who happen to get it?

In the past they gave points to the people who answered it, but reduced the total points the exam was out of. So it was pretty much bonus points for those who got it right.

[Crinkle_Cut]

I was able to calculate Earthquake Reserve Complement, but had no clue about the stupid EPR condition/restriction rule.

[JOLE5646]

Oh for the question regarding calculating excess deficiency. When calculating the investment income on unpaid claims from 2008-2010. I took the average of the 3 unpaid claims liability balances, multiplied it by investment rate of return, and multiplied by 2 years (to represent 2 years of investment income). Not sure if I did this right or not?!?

I think you only have to calculate 2009 and 2010 investment income.
For 2009, it's the average of 2008 and 2009; for 2010, it's the average of 2010 and 2009.
I hope I'm right.

When you said CAS giving bonus for getting the right answer on removed questions, must you get it completely right or they also award partial bonus?

[Crinkle_Cut]

I think you only have to calculate 2009 and 2010 investment income.
For 2009, it's the average of 2008 and 2009; for 2010, it's the average of 2010 and 2009.
I hope I'm right.

When you said CAS giving bonus for getting the right answer on removed questions, must you get it completely right or they also award partial bonus?

Oh ok, I think your solution makes sense, cause you're calculating the two investment incomes representing each annual period.

They grade each question and part, then they change the denominator to remove invalid questions.

[JOLE5646]

It also seems like the exam committee stole some questions from intelmic practice exams. The one on calculating the margin on interest (in %). I got the formula down right but just couldn't plug it in properly.

[Crinkle_Cut]

It also seems like the exam committee stole some questions from intelmic practice exams. The one on calculating the margin on interest (in %). I got the formula down right but just couldn't plug it in properly.

I wrote out the formulas too for the 3 components. Whether I applied the numbers correctly, I dunno. haha.

Oh well, half marks for formulas.

[CASualty]

In the past they gave points to the people who answered it, but reduced the total points the exam was out of. So it was pretty much bonus points for those who got it right.

That seems like the most fair solution.

[ElDucky]

If you said 'It's 200,000, because it's already in the table', you should get full marks.

[herr blau]

I knew it was a trick regarding the formula for II from Ins Op being min(IY*(A+B+C+D+E+F), II), but I just couldn't remember what A+B+C+D+E+F stood for, so I just averaged a bunch of components 'til I had 6...whoopsie!

[intelmic]

It also seems like the exam committee stole some questions from intelmic practice exams. The one on calculating the margin on interest (in %). I got the formula down right but just couldn't plug it in properly.

Yeah, heard about it!

Supposedly, it even had my trick in the end where the margin was higher than 2% so you had to cap it since it was above the prescribed limit.

It's flattering that the CAS found inspiration in my practice exam. :wink:

Hope the few who used my exam got that one correct. This type of question was never asked before so it was a great opportunity for one to differentiate himself from the other candidates. :toth:

[Prince]

Actually, investment income from insurance operations = min[IY*(A+B+C+D-E-F), NII], where A = Average net UP, B = Average UC, etc... This comes from CCIR instuctions, section VI.

That's why they asked you to calculate IY in a). The answer was lower than $200,000.

I did the same thing and found something in the range of 124k - 125k and said it's lower than 200k.

[Prince]

Yeah, heard about it!

Supposedly, it even had my trick in the end where the margin was higher than 2% so you had to cap it since it was above the prescribed limit.

It's flattering that the CAS found inspiration in my practice exam. :wink:

Hope the few who used my exam got that one correct. This type of question was never asked before so it was a great opportunity for one to differentiate himself from the other candidates. :toth:

Have this one right as well. 2.2% and cap it at 2%

[Prince]

I was able to calculate Earthquake Reserve Complement, but had no clue about the stupid EPR condition/restriction rule.

EPR has to be no more than Net PML 500 which is 50m. The given EPR was 25m<50m.

[Prince]

The calculation questions were mostly brand new, never seen before types.
I knew tied selling was related to RIBO but can't remember reading about it anywhere. I hope I got a few points from bsing.
So back to my original question...what's the pass mark gonna be like? It better not be higher than 2009, a much easier exam at 67%.

The pass mark will be such that only 40% of candidates pass. I don't think the exam was too hard. My guess would be 68%-70%

[JOLE5646]

The pass mark will be such that only 40% of candidates pass. I don't think the exam was too hard. My guess would be 68%-70%

So you're saying they'll make the pass mark the highest EVER?

[CASualty]

Have this one right as well. 2.2% and cap it at 2%

Are you talking about Question 19 where you had to back into the Reinsurance Recovery MFAD? Isn't the range of Reinsurance MFAD 0% - 20%? The 2% limit is on the Discount Rate MFAD?

"Calculate the Reinsurance Recovery MfAD that was used at December 31, 2010 to determine the net unpaid claims liability. Show all work."

[Prince]

Are you talking about Question 19 where you had to back into the Reinsurance Recovery MFAD? Isn't the range of Reinsurance MFAD 0% - 20%? The 2% limit is on the Discount Rate MFAD?

"Calculate the Reinsurance Recovery MfAD that was used at December 31, 2010 to determine the net unpaid claims liability. Show all work."

There was a question on Discount rate Mfad where you need to add: timing + Mismatch + Credit and the maximum is 200 bps.

[Agamemnon]

Are you talking about Question 19 where you had to back into the Reinsurance Recovery MFAD? Isn't the range of Reinsurance MFAD 0% - 20%? The 2% limit is on the Discount Rate MFAD?

"Calculate the Reinsurance Recovery MfAD that was used at December 31, 2010 to determine the net unpaid claims liability. Show all work."

I think I got an answer around 6.7% for the Reinsurance Recovery MFAD.

[Prince]

So you're saying they'll make the pass mark the highest EVER?

There is a bit less material compared to 2009 and 2010. They did add couple of texts on reinsurance accounting, claim commutation but many of the Insurance law materials are moved to Course 2. I would expect a bit higher passmark with a pass ratio around 40%, consistent with the pass ratios under the new structure : exam 8 (40.9% last year) and exam 9 in May (39%).

[Prince]

I think I got an answer around 6.7% for the Reinsurance Recovery MFAD.

Don't remember my answer for this.

I did the following:
(0): Calculate the future Gross and Net payment given the payment pattern and the Gross unpaid: $3750 and Net Unpaid: $2250
(1): Reinsurance Pfad: Total Net Unpaid Liabilities(which was given) - net PV@ 4% - Net Pfad Claim Development (=Mfad*Net PV@4%)- Net Pfad Interest rate (=Net PV@3.5%-net PV@ 4%)

(2): PV Ceded (with no margin)= Gross PV @5% - Net PV@4%

(3): Ceded Mfad = (1)/(2)

[CASualty]

There was a question on Discount rate Mfad where you need to add: timing + Mismatch + Credit and the maximum is 200 bps.

OH, that question. I think I did it correctly, but forgot to cap at 200 bps :(

[MOUSSLEEEN]

Hi!

I wrote that EPR must be lower than Gross PML 250. Damn.

What did you think about question 27a? The big one where we has to calculate the capital available. I had problems with the «?» for the value of the AOCI for available for sale DEBT. I was able to calculate the AOIC for bonds, but not for the debt.

Did you had problems with the definitions of «stress testing»? It was not the same definition in DCAT text and in OSFI Stress testing text. The question with the DCAT scenarios was confusing.

I will wrote to the cas about those 2 questions... I think they're not good questions.

[Agamemnon]

Hi!

What did you think about question 27a? The big one where we has to calculate the capital available. I had problems with the «?» for the value of the AOCI for available for sale DEBT. I was able to calculate the AOIC for bonds, but not for the debt.



I just assumed it meant AOIC for bonds and did the calculation. I think my overall MCT was around 125%.

[Prince]

Hi!

I wrote that EPR must be lower than Gross PML 250. Damn.

What did you think about question 27a? The big one where we has to calculate the capital available. I had problems with the «?» for the value of the AOCI for available for sale DEBT. I was able to calculate the AOIC for bonds, but not for the debt.

Did you had problems with the definitions of «stress testing»? It was not the same definition in DCAT text and in OSFI Stress testing text. The question with the DCAT scenarios was confusing.

I will wrote to the cas about those 2 questions... I think they're not good questions.


I just assumed it meant AOIC for bonds and did the calculation. I think my overall MCT was around 125%.

Bonds are debts, by definition. As long as you consider only Bond Available for sale in your AOCI calculation, you'll be fine. 125% sounds familiar.

I put the definition of Stress Test as it is in the OSFI Stress Test paper but I think they will accept both, the DCAT one is just saying it differently.