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Anonymous
10-10-2001, 04:26 PM
Has anyone successfully worked the reinsurance problem from the Actex (page A-37,38)? If so, why does the reinsurer not show an expense in the GFO calculation when the ceding company shows an "allowance" of $100?
Anonymous
10-13-2001, 12:25 PM
I do not have Actex, but judging from what you wrote, it must have been a mistake.
Anonymous
10-16-2001, 08:16 AM
I think it's wrong - hardly something new for this ACTEX. It comes from assuming the ceding company pays commissions in the second year, when the assuming company expensed the allowance in the first year. It would be more appropriate if the $100 was shown as surplus rather than allowance since the allowance was really received in the first year.

That's my take.