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  #51  
Old 09-05-2019, 07:06 PM
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Originally Posted by BruteForce View Post
I just registered, and my two candidate IDs are just one number apart. Hopefully I don't mix them up on exam day!
This is actually a very important point for most of you this sitting that will have two different candidate ids. On each page, ensure that you use the correct candidate number and write it in the corner. Take the extra 1.5 seconds every page to double check it, as this is essential to them scoring your exam correctly.
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  #52  
Old 09-06-2019, 10:15 AM
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I usually have my Candidate ID on a piece of paper right in front of me during the exam so I can refer to it while writing on each page. I'm hoping that will be enough to stop me from mixing things up.
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I would really hate to bring Pokémon to a gun fight.
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  #53  
Old 09-06-2019, 12:43 PM
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Same
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P FM MFE C MLC FAP PA GHC >>> GHA
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  #54  
Old 09-08-2019, 02:55 PM
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False definitions:

GHA 103-16 -- Health Reserves states definitions vary for reserve vs liability. Their definition is wrong. All reserves are liabilities and even show up as such on financial statements. How do you usually handle this kind of false statement. Memorize anyway, or ignore and hope it doesn't come up?

I'm actually serious, I loose so much study time getting frustrated with things like this, and don't have a good approach. I worry if I ignore it, it may come up in an exam, but memorizing false information just seems wrong.
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  #55  
Old 09-09-2019, 10:31 AM
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I just remember the correct definitions.
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I would really hate to bring Pokémon to a gun fight.
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  #56  
Old 09-09-2019, 10:31 AM
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But couldn't you have a revenue reserve? For example in Medicare you know you're going to get a risk adjustment payment from CMS down the road, and some companies hold a reserve for that.
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  #57  
Old 09-09-2019, 10:32 AM
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Not sure if that's what GH 103-16 is referring to, I didn't actually go look
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  #58  
Old 09-09-2019, 06:39 PM
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I hated the new EV and AAV material from the bottom of my heart. Not only it's possible that we will need to do financial statement type of calculation/rollforward, the lists from Chapter 5 of M&A are absolutely disgusting.
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  #59  
Old 09-09-2019, 07:04 PM
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Default Reserve vs Liability

Hey Climbing Bum,

In general the advise I give is to stick to what is said on the syllabus. I would say that an exception to that rule is if there happens to be a formula error in the source material, but these are rare and they would be caught and fixed in the MATE manual anyway.

I would agree in practice these two terms get used as if they are interchangeable. To specifically address your question liabilities are for events that have already happened. So in health insurance an example of this is the IBNP. From a practical sense the practicing actuary understands this, but we just often call this a reserve in casual conversations. But as the "I" in IBNP indicates these claims have already occurred. A true reserve is for an event that has not actually happened yet.

And one final point for your reference, this exact question has been asked on a past exam. Hopefully this conversation will be enough to make it stick in your mind and memorization will not be necessary!

Quote:
Originally Posted by Climbing Bum View Post
False definitions:

GHA 103-16 -- Health Reserves states definitions vary for reserve vs liability. Their definition is wrong. All reserves are liabilities and even show up as such on financial statements. How do you usually handle this kind of false statement. Memorize anyway, or ignore and hope it doesn't come up?

I'm actually serious, I loose so much study time getting frustrated with things like this, and don't have a good approach. I worry if I ignore it, it may come up in an exam, but memorizing false information just seems wrong.
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  #60  
Old 09-09-2019, 09:55 PM
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@Mate Seminars. Thanks for the advice that's disappointing to hear that this was actually an exam question. I'll continue grinding my teeth and doing this memorization. Hopefully this will be my last exam.

With regards to your second paragraph. I strongly disagree. While the two terms are different and do get used interchangeable it's clear that they are not mutually exclusive as the text seems to indicate. ASOP 42 2.10 PDR definition. Is one of many places were the text definition is contradicted.


@Bruce I haven't ever seen an entry for a receivable that was titled as a reserve on the accounting statement unless it was a negative reserve amount on the liability side. Are you referring to an entry on the asset side?
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