What exactly is includable losses?

[USTC]

Q30-1999 asks for the includable losses in part a), and the solution seems to refer this amount as Actual Limited Losses.

However,

Q41-2004 explicitly says the includable losses=Actual Limited Losses+ARULL, even though ARULL is 0 in one of the two model solutions. If this is the truth, according to Q4-2003, includable losses = basic limit losses subject to experience modification.

Thanks

[frank_exams]

I don't have the 1999 exam handy, but the other two look consistent. ARULL could be interpreted as 0 in the 2004 exam because the problem states "lthe loss experience for the occurrence policies are fully developed" and some consider IBNR as part of loss development.

If you look at p.7 in the ISO manual, there's a calculation about 2/3's down the page which computes Total includable losses as the sum of Actual Limited + ARULL.

Frank

[USTC]

I don't have the 1999 exam handy, but the other two look consistent. ARULL could be interpreted as 0 in the 2004 exam because the problem states "lthe loss experience for the occurrence policies are fully developed" and some consider IBNR as part of loss development.

If you look at p.7 in the ISO manual, there's a calculation about 2/3's down the page which computes Total includable losses as the sum of Actual Limited + ARULL.

Frank

Thanks for your reply, and I agree with you that ARULL=0 for that questions.

If you have the All10 manual, you can find Q30-1999 in those after-chapter questions.