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Life Finance and Valuation Exam Old Individual Life and Annuities Forum

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  #171  
Old 05-03-2019, 11:51 AM
General Covariance General Covariance is offline
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I don't think 8 was defective. You had enough to calculate the FY prem and renewal premiums, under CRVM and their approach.
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  #172  
Old 05-03-2019, 12:00 PM
be the good guy be the good guy is offline
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Its a minor error. 1000ax:3 is not 3. It would be closer to 3000!
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  #173  
Old 05-03-2019, 12:06 PM
Testing1to10 Testing1to10 is offline
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Was anyone else surprised they doubled up on SOP 03-1? And with a ratio that was greater than 100%, which is something I hadn't seen.

In general, the "Critique the Statement" questions were life-savers for me.
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  #174  
Old 05-03-2019, 12:19 PM
Arms91 Arms91 is offline
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Yeah I loved the Critique questions. Maybe only one or two statements on the whole exam I wasn't 100% on.
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  #175  
Old 05-03-2019, 12:21 PM
General Covariance General Covariance is offline
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Agreed on the 1000 thing. I noticed that too, which was a clear mistake.
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  #176  
Old 05-03-2019, 12:38 PM
Fracktuary Fracktuary is offline
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Quote:
Originally Posted by Testing1to10 View Post
Was anyone else surprised they doubled up on SOP 03-1? And with a ratio that was greater than 100%, which is something I hadn't seen.

In general, the "Critique the Statement" questions were life-savers for me.
How did people handle this ? I recalculated the EGPís as original egp + total assessments - excess benefits +-change in SOp liab.

Iím honestly not sure how I was supposed to handle that one, Iím skeptical that adding the total assessments into the EGP is at all appropriate, I just didnít know what to do and every other way I could think of resulted in negative EGPs.
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  #177  
Old 05-03-2019, 12:57 PM
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PlainDoll PlainDoll is offline
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Quote:
Originally Posted by Fracktuary View Post
How did people handle this ? I recalculated the EGPís as original egp + total assessments - excess benefits +-change in SOp liab.

Iím honestly not sure how I was supposed to handle that one, Iím skeptical that adding the total assessments into the EGP is at all appropriate, I just didnít know what to do and every other way I could think of resulted in negative EGPs.
My EGP' was just = EGP - Increase in SOP.

For the negative EGP, I just made a point that I'll cap DAC balance at the original DAE with interest. Otherwise it will grow beyond original DAE due to the negative EGP.
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  #178  
Old 05-03-2019, 01:01 PM
Testing1to10 Testing1to10 is offline
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Quote:
Originally Posted by PlainDoll View Post
My EGP' was just = EGP - Increase in SOP.

For the negative EGP, I just made a point that I'll cap DAC balance at the original DAE with interest. Otherwise it will grow beyond original DAE due to the negative EGP.
I did the same. Only the first EGP was negative, I think. I just wrote out the three options for handling negative EGPs and said it was okay to let it be negative given the negative EGPs were temporary and DAC would still amortize.

I don't usually write extra things like this, but the problem was worth 5 or 6 points and felt way too easy to not add additional detail.
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  #179  
Old 05-03-2019, 01:21 PM
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Quote:
Originally Posted by Testing1to10 View Post
I did the same. Only the first EGP was negative, I think. I just wrote out the three options for handling negative EGPs and said it was okay to let it be negative given the negative EGPs were temporary and DAC would still amortize.

I don't usually write extra things like this, but the problem was worth 5 or 6 points and felt way too easy to not add additional detail.
Treated similar. Floored EGP at zero and it worked out. What were the FASB planned improvements for SOP? I couldn't recall any improvements for SOP Liab and haven't been able to locate them in my notes.
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  #180  
Old 05-03-2019, 01:23 PM
General Covariance General Covariance is offline
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Treated similar. Floored EGP at zero and it worked out. What were the FASB planned improvements for SOP? I couldn't recall any improvements for SOP Liab and haven't been able to locate them in my notes.
Benefit ratio is capped, on going PFBL testing required.

I did something similar with the negative EGPs.
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