Solutions to Practice Problems (Notes to the Financial Statements)

[roseberykebab]

Going off the sticky above, I noticed that there were no solutions to the "Feldblum - Notes to the Financial Statement.pdf"

If there are, would someone please direct, otherwise, here are my answers, would someone confirm. Thanks.

(1) 5.5
(2) Excluding the current year:
a. Discounted Liability at Current Rate
b. Discounted Liability at Old Rate
c. Change in discounted Liability
d. Amount of Discount (by LOB, Loss vs. LAE, Case vs. BULK+IBNR)
(3) Relativity Restrictions and Extra-Territorial Legislation
(4) Paid vs. Incurred Losses and Eligibility
(5) Reinsurers could be (i) out of business, (ii) deny or (iii) default
(6) 50=(300+200)*.5*.2; this could be wrong but I am using the formula UEPR \times q \times c to get the commission equity
(7) Purpose of Special Surplus ??? -
(8) provision for reinsurance, sao, notes, GAAP disclosure
(9) Lower
a. Notes: is one year vs. pfr=multiple years
b. PFR: should be at least as large as the expected uncollectible amount
(10) 3 Ways a structured settlement can be arranged
Insurer is payee
insured is payee (no release of liability)
insured is payee (release of liability)
(11) 3 reasons for structured settlement
-matching
-management
-incompetents and minors
-tax purposes

Thanks again.