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Long-Term Actuarial Math Old Exam MLC Forum

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  #161  
Old 04-12-2018, 12:23 PM
NchooseK NchooseK is offline
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Originally Posted by lcuandon View Post
I've taken MLC twice and failed both times. I was solid at MC both times. No one knows the pass mark for sure so I wouldn't bet on that. The real money maker is the WA. WA has a tendency to expose any weaknesses that can easily be hidden by plug-n-chug or a lucky guess on the MC.
I wish you upcoming luck!

The exam isn't so bad; the race to finish it is.
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  #162  
Old 04-12-2018, 01:15 PM
NchooseK NchooseK is offline
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Hi, I'm working on Fall 2017 WA question 3 (a). I doubt why the accrued annual pension benefit aren't applied reduction factor of 0.5%? How different to Spring 2017 question 6 (a) which the annual pension benefit applied reduction factor? Thank you.
Hello, Kasem.

Fall 2017 WA Question 3 mentions a penalty for retiring early, which is the reduction factor of 0.005 times the number of months you retire prior to your 65th birthday, when you are "supposed" to retire. If you read below Part (a), you will see that Caroline retires "early" with 50% probability on January 1, 2018.

However, Part (a) wants an accrued benefit as of December 31, 2017, meaning it draws from experience prior to 2018. In fact, the experience from 2015 to 2017 is given in a table, and Caroline received salaries in each of those years and didn't retire. As such, the early retirement penalty is irrelevant to Part (A).

Note that if a part asks a question, unless otherwise stated, any information below said question is not needed to answer the question above. So answer questions when they are asked, and read on afterward if you can.

You also asked about Spring 2017 WA 6(a). Part A is asking for a replacement ratio GIVEN Kira retires early at 64.5. As such, you would most certainly penalize the pension benefit, since that is the rule for retiring early.

Is this clear?

Best,
Andy
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  #163  
Old 04-12-2018, 01:27 PM
kasem kasem is offline
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Originally Posted by NchooseK View Post
Hello, Kasem.

Fall 2017 WA Question 3 mentions a penalty for retiring early, which is the reduction factor of 0.005 times the number of months you retire prior to your 65th birthday, when you are "supposed" to retire. If you read below Part (a), you will see that Caroline retires "early" with 50% probability on January 1, 2018.

However, Part (a) wants an accrued benefit as of December 31, 2017, meaning it draws from experience prior to 2018. In fact, the experience from 2015 to 2017 is given in a table, and Caroline received salaries in each of those years and didn't retire. As such, the early retirement penalty is irrelevant to Part (A).

Note that if a part asks a question, unless otherwise stated, any information below said question is not needed to answer the question above. So answer questions when they are asked, and read on afterward if you can.

You also asked about Spring 2017 WA 6(a). Part A is asking for a replacement ratio GIVEN Kira retires early at 64.5. As such, you would most certainly penalize the pension benefit, since that is the rule for retiring early.

Is this clear?

Best,
Andy
Hi Andy,

Is the word "accrued" relevant? Or just observe whether it is supposed to something like retire date or not.
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  #164  
Old 04-12-2018, 01:31 PM
NchooseK NchooseK is offline
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It is very relevant. I highly suggest rereading pension topics.

Good luck!

-Andy
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  #165  
Old 04-12-2018, 04:09 PM
ActuariallyDecentAtBest ActuariallyDecentAtBest is offline
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Hi Andy,

Is the word "accrued" relevant? Or just observe whether it is supposed to something like retire date or not.
Very much so. Re-read the pension section, and focus on the wording. If you master the language of that section, then you'll easily ace pensions.
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  #166  
Old 04-12-2018, 09:36 PM
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Thanks all,

Another question on Spring 2017 WA 1 (e) (i), why the solution use the notation A^ij 40+k:5-k as a term? When I see it first I thought that is endowment since there is no superscript 1 above 40+k.
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  #167  
Old 04-12-2018, 09:59 PM
NchooseK NchooseK is offline
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Thanks all,

Another question on Spring 2017 WA 1 (e) (i), why the solution use the notation A^ij 40+k:5-k as a term? When I see it first I thought that is endowment since there is no superscript 1 above 40+k.
Kasem,

The most helpful thing I can say is that you need to read a manual in its entirety prior to attempting the few true exam simulations we have.

The superscript is Markov model notation, not insurance. I want to be kind, however, you do not have the requisite knowledge right now to handle most WA questions. If you are sitting on the 24th, I would study hard until the 22nd, passively study on the 23rd, and sit on the 24th. I really hope I'm wrong, but I do not expect you to do well without this crucial knowledge this late in the game. Others and I will continue to try and answer your questions, but do yourself a favor and read a manual. Read it twice! I read mine at least three times. The material here is heavier than any of the other prelims.

Best of luck!
Kind regards.

-Andy
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Last edited by NchooseK; 04-12-2018 at 10:11 PM..
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  #168  
Old 04-12-2018, 10:05 PM
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PerpetualMotion PerpetualMotion is offline
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Exam is so close and in the middle of bid season, hoping I can find some time to study coming up. What I would give to take this pre WA.
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  #169  
Old 04-12-2018, 10:10 PM
NchooseK NchooseK is offline
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Exam is so close and in the middle of bid season, hoping I can find some time to study coming up. What I would give to take this pre WA.
Embrace it! If you have to do it, so do others! You got this!
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  #170  
Old 04-12-2018, 10:19 PM
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Embrace it! If you have to do it, so do others! You got this!
I mean I feel prepared, I wonder how many health insurance actuaries are sitting this round. This is a pretty small thread for it being the last sitting.
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