What were your multiple choice answers

[BassFreq]

BCDCDEC.

Anyone else care to share?
I'm pretty confident of my answer to question 1 (the BZ question).

[Purple Princess]

I'll tell ya when I get my exam back.

[The Sad Man]

ECDDXDC

I skipped the one on FAS113. You're probably right on quest1. I had it narrowed down to B and E and of course guessed wrong. What was condition III? something about trend and randomness?

[BassFreq]

You're probably right on quest1. I had it narrowed down to B and E and of course guessed wrong. What was condition III? something about trend and randomness?Condition III was about there being a high correlation between trend and data volatility. BZ says a number of times that trend volatility has nothing to do with volatility in the data.

[ssgg]

Condition III was about there being a high correlation between trend and data volatility. BZ says a number of times that trend volatility has nothing to do with volatility in the data.

i skipped the question, but i feel good coz i actually skipped the whole article b4 the exam.

[KidCA]

I can barely remember, but I think:

EADCDEC...

I know my #2 is wrong. I went back to it after the exam--I knew how to do it, but i must've been computing something wrong. I kept getting around $35k when the lowest possible was <$55k, I was too off.

BZ #3 was that trend instability and volatility of data were positively correlated. I think that they're uncorrelated.

[Purple Princess]

I also thought the were uncorrelated. But really not sure on that one.

[Becoming An Actuary]

I believe 5 was E.

"If separate accounting for prospective and retroactive provisions included within a single contract is impracticable, the contract shall be accounted for as a RETROACTIVE contract..." (E said PROSPECTIVE instead of RETROACTIVE, so it was false)

at least I think it was E, but in either case I'm pretty sure it was this statement that was false.

[The Sad Man]

Can anyone remember if the FAS 113 question was #5 or #6?

[Warren Schmidt]

XCDDADC. From what I remember, 5 was an educated guess - I was able to eliminate a couple answers, but was not sure if A was the correct answer either.

[Purple Princess]

I believe 5 was E.

"If separate accounting for prospective and retroactive provisions included within a single contract is impracticable, the contract shall be accounted for as a RETROACTIVE contract..." (E said PROSPECTIVE instead of RETROACTIVE, so it was false)

at least I think it was E, but in either case I'm pretty sure it was this statement that was false.

Oh I never caught that...I think I found something else that sounded really false too.

[KidCA]

Becoming an actuary. Yea... i actually put E that one too. I don't remember two Es in a row... damn, whadda I put for 6? I can't remember without questions.

[Sox34]

what about the in-force premium question - does anyone remember the specifics - i think i got D

[The Sad Man]

I probably messed that inforce premium up.

It said a 6 month policy is effective Aug 1 with a premium of 3600 and an endorcement of 2400 is on Oct 1. What is the total effective premium on Dec 31?

I said 3600 + 2400/(4/6) = 7200

[root4unc]

I probably messed that inforce premium up.

It said a 6 month policy is effective Aug 1 with a premium of 3600 and an endorcement of 2400 is on Oct 1. What is the total effective premium on Dec 31?

I said 3600 + 2400/(4/6) = 7200

that's what I got

[Becoming An Actuary]

I probably messed that inforce premium up.

It said a 6 month policy is effective Aug 1 with a premium of 3600 and an endorcement of 2400 is on Oct 1. What is the total effective premium on Dec 31?

I said 3600 + 2400/(4/6) = 7200

3600* [ {1+2+2+2+2}/12] + 2400/(2/3)* [9/12]=5400

oops, i read the question as "what's the EARNED premium using the in-force method?"..

how confident are you that it asked for total effective premium?

[ssgg]

I probably messed that inforce premium up.

It said a 6 month policy is effective Aug 1 with a premium of 3600 and an endorcement of 2400 is on Oct 1. What is the total effective premium on Dec 31?

I said 3600 + 2400/(4/6) = 7200

what's wrong with that?

[vitamink]

does anyone have idea about Q2?

[chic squirrel]

I got 7200 too.

[Sox34]

does anyone have idea about Q2?

which one was that? the ULAE question?

[Sox34]

I got 7200 too.


hmm that sounds right - was that D? that's all i can remember :)

[Warren Schmidt]

I got 7200 as well

[vitamink]

Me too.

But I think MC is not so important this time.

[ssgg]

I got 7200 too.

if it's not 7200, then the question is defective at least misleading

[KidCA]

someone what they remember of the ULAE question #2... i see a lot of C's were picked. I scr*wed the pooch on it. I got pd/pd at .1 I think. then 40% applied to case reserves and 1.0 applied to the IBNR. Still I got some low a$$ answer. poo

[The Sad Man]

does anyone have idea about Q2?

Q2 was that ULAE one. It was tricky because you had to realize the IL was composed of the $250k paid CY loss and a $250k reserve increase bringing your total reserves to $1.25M of which (20% is IBNR). I believe the CY paid ULAE/CY paid loss was 25k/250k = 10%, I can't remember what % of ULAE was paid at beginning (60%? or 40%?)

So you'd have .4*.1*1M + .1*250k =65,000. I think that was my answer.

[Purple Princess]

Ah man my brain wasn't functioning this morning. I divided the endorsement by 3/6 gah.

[Sox34]

Q2 was that ULAE one. It was tricky because you had to realize the IL was composed of the $250k paid CY loss and a $250k reserve increase bringing your total reserves to $1.25M of which (20% is IBNR). I believe the CY paid ULAE/CY paid loss was 25k/250k = 10%, I can't remember what % of ULAE was paid at beginning (60%? or 40%?)

So you'd have .4*.1*1M + .1*250k =65,000. I think that was my answer.

yup my answer exactly

[KidCA]

See I got the 1.25 M total reserve, but then I think I used 250k for the case reserves. that's my screwup

[vitamink]

so did you remember the choice for Q2?

[The Sad Man]

I believe it should be C. Knowing me, I misbubbled though.

[jorgensquelch]

Q2 was that ULAE one. It was tricky because you had to realize the IL was composed of the $250k paid CY loss and a $250k reserve increase bringing your total reserves to $1.25M of which (20% is IBNR). I believe the CY paid ULAE/CY paid loss was 25k/250k = 10%, I can't remember what % of ULAE was paid at beginning (60%? or 40%?)

So you'd have .4*.1*1M + .1*250k =65,000. I think that was my answer.
Yes, my answer as well.

[The Sad Man]

I'm trying to remember the 7 MC questions.

1. The BZ problem
2. ULAE
3. F-Ratio?
4. FAS 05: what falls under contingency?
5. FAS 113
6. In Force premium
7. Intermediary clause: what statement is false?

[MUAct]

1. The BZ problem
2. ULAE
3. F-Ratio?
4. FAS 05: what falls under contingency?
5. FAS 113
6. In Force premium
7. Intermediary clause: what statement is false?

Try to remember my anwsers:
1. B. Only the 2nd one is true.
2. C.? (.4*.1*1M + .1*250k =65,000)
3. D.
4. ?
5. E. Retroactive/Prospective
6. ? 7200
7. ? Don't remember the anwser but I think it was pretty obvious.

[much ado about nothing]

i got A for #2. i thought the total loss reserve was 1M, of which, $200k was IBNR and $800k was case reserve. did anyone else interpret the question like that?

[MUAct]

i got A for #2. i thought the total loss reserve was 1M, of which, $200k was IBNR and $800k was case reserve. did anyone else interpret the question like that?

I think I got 1.25M total reserve and 250k IBNR.

[much ado about nothing]

did the question say that the total loss reserve was $1M, of which, 80% was case reserve and 20% was IBNR? is this correct?

[MUAct]

did the question say that the total loss reserve was $1M, of which, 80% was case reserve and 20% was IBNR? is this correct?

Don't remember anything. We will when we get the exam booklet back.

[The Sad Man]

1. The BZ problem
2. ULAE
3. F-Ratio?
4. FAS 05: what falls under contingency?
5. FAS 113
6. In Force premium
7. Intermediary clause: what statement is false?

Try to remember my anwsers:
1. B. Only the 2nd one is true.
2. C.? (.4*.1*1M + .1*250k =65,000)
3. D.
4. ?
5. E. Retroactive/Prospective
6. ? 7200
7. ? Don't remember the anwser but I think I was pretty obvious.

7. was C and the false statement said the purpose of the intermediary clause is to assign liability to the reinsurance company if the primary insurance company goes insolvent. (bolded shoudl have been replaced with intermediary)

4. Might have been the FAS 05 problem. I believe 2 out of the 3 were contingencies with depreciation not falling under this category.

[The Sad Man]

did the question say that the total loss reserve was $1M, of which, 80% was case reserve and 20% was IBNR? is this correct?

This has been discussed in other places. The reserve at the prior year's end was $1M but in the current calendar year it increased by $250k, derived from
IL = $500k
Paid L = $250
thus change in reserves = $250k

[MUAct]

7. was C and the false statement said the purpose of the intermediary clause is to assign liability to the reinsurance company if the primary insurance company goes insolvent. (bolded shoudl have been replaced with intermediary)

4. Might have been the FAS 05 problem. I believe 2 out of the 3 were contingencies with depreciation not falling under this category.

I think I chose the same in 4 and 7.

[teddybear]

did the question say that the total loss reserve was $1M, of which, 80% was case reserve and 20% was IBNR? is this correct?


I did the same way and the answer made me wonder quite a while.

[jared]

i got A for #2. i thought the total loss reserve was 1M, of which, $200k was IBNR and $800k was case reserve. did anyone else interpret the question like that?

I got around $52,000 (A).

[Mel-o-rama]

All I remember is that I didn't answer A or B on any question. (So I probably got #1 wrong). See my comments on #2 on a separate thread.

[smartcat]

I believe 5 was E.

"If separate accounting for prospective and retroactive provisions included within a single contract is impracticable, the contract shall be accounted for as a RETROACTIVE contract..." (E said PROSPECTIVE instead of RETROACTIVE, so it was false)

at least I think it was E, but in either case I'm pretty sure it was this statement that was false.

I knew this was the faulse one, so I didn't even look at others.
But I guessed the "correlation" question wrong.

[FatActuary]

I have my test back, and these are my answers:
1. The BZ problem
2. ULAE
3. F-Ratio
4. FAS 05: what falls under contingency?
5. FAS 113
6. In Force premium
7. Intermediary clause: what statement is false?

1. B
2. C
3. D
4. B
5. B, This is Wrong :swear:
6. D, $7,200
7. C

[Sox34]

I have my test back, and these are my answers:
1. The BZ problem
2. ULAE
3. F-Ratio
4. FAS 05: what falls under contingency?
5. FAS 113
6. In Force premium
7. Intermediary clause: what statement is false?

1. B
2. C
3. D
4. B
5. B, This is Wrong :swear:
6. D, $7,200
7. C

I dont have my test back, but the contingency one i believe was D - 2 and 3.

what was the choice for C for 7?

[The Sad Man]

I dont have my test back, but the contingency one i believe was D - 2 and 3.

what was the choice for C for 7?

1. B
2. C
3. D
4. D
5. E
6. D
7. C

anyone disagree with that?

[vitamink]

I only got 3.75 from 7

[FatActuary]

I only got 3.75 from 7
Yeah, just 4.5 out of 7 for me.
I felt a lot better on the questions when I looked at them the first time.
I have a feeling this is going to be a reoccurring theme for me on this exam.

[Quack]

1. B
2. C
3. D
4. D
5. E
6. D
7. C

anyone disagree with that?
I believe those answers are correct. I skipped one question and got another wrong for 4.75 points.

[vitamink]

better than 3.75