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 Short-Term Actuarial Math Old Exam C Forum

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#1
05-03-2018, 12:45 PM
 gauchodelpaso Member SOA Join Date: Feb 2012 College: Eastern Michigan U Posts: 128
STAM exam sample #319

If in the syllabus does not show Discounting Loss Reserves (even if it's part of Chapter 3 of the Brown book that is included as the reference) why would they have a sample with it? I am attaching the questionnaire.

"Stam 319 : Calculate the ratio of discounted reserves to undiscounted reserves as of December 31, CY8."

Syllabus: "9. Topic: Pricing and Reserving for Short-Term Insurance Coverages (15-25%)
Learning Objectives
The Candidate will be able to use basic methods to calculate premiums and reserves for short-term insurance coverages.
Learning Outcomes
The Candidate will be able to:
a) Explain the role of rating factors and exposure.
b) Describe the different forms of experience rating.
c) Describe and apply techniques for estimating unpaid losses from a run-off triangle, using the following methods:
• Chain ladder
• Average cost per claim
• Bornhuetter Ferguson
d) Describe the underlying statistical models for the methods in (c).
e) Calculate premiums using the pure premium and loss ratio methods."

do we need to infer then that Discounting Reserves is part of the exam, although not explicit in the syllabus? (and if STAM is SHORT TERM, why discounting when there is nothing like it in the old C exam? ). I know it's not a big deal but we had another 500 small deals. Perhaps it's there so we can use the calculator....an easy question with a lot of keystrokes to enter wrongly.
Attached Images
 2018-04-exam-stam-questions.pdf (629.1 KB, 110 views)
__________________

German
______________
Prelims: 1/P - 2/FM - 3F/MFE - LTAM - STAM
VEE: Economics - Corporate Finance - Applied Statistics

Last edited by gauchodelpaso; 05-04-2018 at 09:05 AM.. Reason: addtl material
#2
05-05-2018, 09:07 PM
 gauchodelpaso Member SOA Join Date: Feb 2012 College: Eastern Michigan U Posts: 128

I guess there is no interest yet in STAM? I guess everybody is focused in passing C in June?
__________________

German
______________
Prelims: 1/P - 2/FM - 3F/MFE - LTAM - STAM
VEE: Economics - Corporate Finance - Applied Statistics
#3
05-05-2018, 11:48 PM
 Jim Daniel Member SOA Join Date: Jan 2002 Location: Davis, CA College: Wabash College B.A. 1962, Stanford Ph.D. 1965 Posts: 2,716

Quote:
 Originally Posted by gauchodelpaso If in the syllabus does not show Discounting Loss Reserves (even if it's part of Chapter 3 of the Brown book that is included as the reference) why would they have a sample with it? I am attaching the questionnaire. "Stam 319 : Calculate the ratio of discounted reserves to undiscounted reserves as of December 31, CY8." Syllabus: "9. Topic: Pricing and Reserving for Short-Term Insurance Coverages (15-25%) Learning Objectives The Candidate will be able to use basic methods to calculate premiums and reserves for short-term insurance coverages. Learning Outcomes The Candidate will be able to: a) Explain the role of rating factors and exposure. b) Describe the different forms of experience rating. c) Describe and apply techniques for estimating unpaid losses from a run-off triangle, using the following methods: • Chain ladder • Average cost per claim • Bornhuetter Ferguson d) Describe the underlying statistical models for the methods in (c). e) Calculate premiums using the pure premium and loss ratio methods." do we need to infer then that Discounting Reserves is part of the exam, although not explicit in the syllabus? (and if STAM is SHORT TERM, why discounting when there is nothing like it in the old C exam? ). I know it's not a big deal but we had another 500 small deals. Perhaps it's there so we can use the calculator....an easy question with a lot of keystrokes to enter wrongly.
The bottom line is that candidates are responsible for everything in the readings, whether or not a topic is mentioned in the learning objectives. Over the (too) many years I've been following these exams closely, I've seen many things that ARE mentioned in the learning objectives that are almost never tested, while some things that are NOT mentioned get tested with some regularity.

Also, sample questions/exams do not seem to be created with a great deal of care, unfortunately. I recall when a sample exam was released for the old Course 4 and a distinguished statistician who was an FSA and director of a major academic actuarial program found herself unable to complete the exam in _several_ hours. Things have improved, in my opinion, but quality control remains low. [The very competent and hard-working Stuart Klugman cannot keep an eye on everything.]
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#4
05-06-2018, 11:16 PM
 gauchodelpaso Member SOA Join Date: Feb 2012 College: Eastern Michigan U Posts: 128

Thank you, Jim! you are always so helpful to us! It's a very interesting point of view, and very realistic.
__________________

German
______________
Prelims: 1/P - 2/FM - 3F/MFE - LTAM - STAM
VEE: Economics - Corporate Finance - Applied Statistics
#5
05-08-2018, 05:46 PM
 Abraham Weishaus Member SOA AAA Join Date: Oct 2001 Posts: 7,233

By the way, I find it noteworthy that none of the new sample questions relate to the new health insurance study note.
#6
05-09-2018, 05:03 PM
 gauchodelpaso Member SOA Join Date: Feb 2012 College: Eastern Michigan U Posts: 128

perhaps I need to take the exam before they figure it out. The added material and textbook is like 10 ranks below exam C's... It seems like somebody acted in haste.
__________________

German
______________
Prelims: 1/P - 2/FM - 3F/MFE - LTAM - STAM
VEE: Economics - Corporate Finance - Applied Statistics
#7
05-10-2018, 03:49 PM
 gauchodelpaso Member SOA Join Date: Feb 2012 College: Eastern Michigan U Posts: 128

Quote:
 Originally Posted by Abraham Weishaus By the way, I find it noteworthy that none of the new sample questions relate to the new health insurance study note.
Hi, Dr Weishaus! Personally I never thought that my 30 year experience dealing with private medical/dental insurance, as a user / employee would qualify me for an exam. But after reading the study note, I felt like I was reading the information when I was qualifying for a plan each year! And the same thing now with the Medicare Plans that are 100% more complex than the study note.

Benefits of being an old timer.

German
__________________

German
______________
Prelims: 1/P - 2/FM - 3F/MFE - LTAM - STAM
VEE: Economics - Corporate Finance - Applied Statistics

 Tags discount loss reserving, loss reserving, stam

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