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Long-Term Actuarial Math Old Exam MLC Forum

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Old 07-26-2019, 09:40 PM
isaiahbarrett27 isaiahbarrett27 is offline
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Default Interim Reserves

Is linear interpolation good enough to know here? Seems like between that and exact method, linear is far easier and applies to other topics/products. But given it's such a small percentage of potential problems would SOA ask for one specifically?
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Old 07-27-2019, 02:02 AM
Seasplash Seasplash is offline
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Hey Isaiah, Sebastian here. I have not came across any linear interpolation interim reserves questions. Most interim reserve questions I’ve seen have used the exact method (e.g (Reserve at time 10 + premium - Recurring Expense)(1+I)^.4 = .4q10 x (DB + settlement expense) + .4p10 x Reserve at time 10.4.
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Old 07-27-2019, 10:24 AM
isaiahbarrett27 isaiahbarrett27 is offline
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Okay thanks bro I appreciate that. So much for no help till next week huh? lol
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