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Old 12-15-2009, 02:04 AM
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Unhappy New FA: Task 3B

Can anyone show me which study reference can I refer to to do this task? I'm really lost ! Spent like an hr figuring and still not complete yet ...

The reserves... is there suppose to be something in duration 0? I couldnt match the period to the triangulation given.

Last edited by jensen; 12-15-2009 at 02:21 AM..
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Old 12-15-2009, 08:25 AM
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There is nothing specificly like this question, but:

Check the solution to EOM4 for calculations,
and ASOP 19 has a broad definition of distributable earnings
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Old 12-15-2009, 08:29 AM
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Quote:
Originally Posted by TwoStep View Post
There is nothing specificly like this question, but:

Check the solution to EOM4 for calculations,
and ASOP 19 has a broad definition of distributable earnings
Thanks Twostep

I managed to make the spreadsheet work

One concern I have now is how do i know if what I did is correct? Is there any like pattern to check for, eg: is the distributable earnings suppose to sway from + to - as duration increases?

Another one is the reserve factors used; Why is it that there is no more reserve kept after age 15 when the policy is renewable thru the dog's life? Doesnt make sense to me.
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Old 12-15-2009, 11:22 AM
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I cant answer the first question without giving away too much.

The reserve factors stop at age 15 since mortality (qx) is 1 at that point.

I think your on the right path though.
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Old 12-20-2009, 11:47 AM
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Default about investment income on (Premium-Expense)

I am wondering if I should include the investment income on (Premium-Expense) into the "before tax income"?
I am confused because the premium and expense are BOY, and others are EOY.
Thanks for your help!

Last edited by Lily08; 12-20-2009 at 02:27 PM..
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Old 08-19-2010, 04:36 PM
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Quote:
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I am wondering if I should include the investment income on (Premium-Expense) into the "before tax income"?
I am confused because the premium and expense are BOY, and others are EOY.
Thanks for your help!
that is what i think too.. i think we should be adjusting both for investment income...
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Old 08-19-2010, 04:42 PM
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that is what i think too.. i think we should be adjusting both for investment income...
I don't think we need to be adjusting both or they would have given us an assumption to increase premium and expense.

I think before tax income = premium + inv income - death benefit - expense - change in reserve
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Old 08-19-2010, 04:58 PM
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why include "inv income" on just some things but not other things where it is equally reasonable? how do u justify that?
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Old 08-20-2010, 12:42 PM
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how much should we write for task 3B part 1?
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Old 08-21-2010, 01:52 PM
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how much should we write for task 3B part 1?
No idea, I dont have a whole lot so far
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final assessment, task 3

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