2004 Exam - OMG! I still can't pass it

[Sotally Tober]

Is it just me, or is this a particluarly hard exam? I can't believe I actually got a 5 on it. Some of theses questions were just brutal and I STILL can't get them. #56? If they ask this again, I'll miss it. #57? Horrible question, IMO. #58?!? No chance for me.

Shoot me now!

[Da Bears!]

Originally Posted by Sotally Tober

Is it just me, or is this a particluarly hard exam? I can't believe I actually got a 5 on it. Some of theses questions were just brutal and I STILL can't get them. #56? If they ask this again, I'll miss it. #57? Horrible question, IMO. #58?!? No chance for me.

Shoot me now!

Yes, all horrible questions. But hey, that was only 12 or so points, and surely you could get some partial credit on them. So, no big deal.

Just pray there's no Canadian questions this year. If we fail, I'll blame Canada.

[Sotally Tober]

Originally Posted by Da Bears!

Yes, all horrible questions. But hey, that was only 12 or so points, and surely you could get some partial credit on them. So, no big deal.

Just pray there's no Canadian questions this year. If we fail, I'll blame Canada.

Screw Canada!

[Plant Food]

If Canada were dead and gone there'd be no more Celine Dion.

[GefilteFish144]

I got my ACAS on that exam, but that was only because I got a 5 the year before. Had it been my first crack at 7 I would have bombed it. Very few people got even close to answering the tax question. Dust yourself off, take the '05 exam and keep studying -- the chances of the CAS hitting you with another exam that awful are fairly slim.

[Da Bears!]

Originally Posted by Plant Food

If Canada were dead and gone there'd be no more Celine Dion.

Thank goodness

[JustASix]

I know this is too late to be helpful, but the passing score was only 56 on the 2004 exam.

[Da Bears!]

I still don't quite get #56 on the 2004 exam. First of all because my All10 had a typo in the solution. But even now, I don't quite follow the logic.

For the initial years, they make it seem like the pollution claims are part of the IBNR/Bult reserves.

Pollution claim is reported and initally reserved for $1 during 1994, so year-ending reserve is $1.

1995 Year-ending IBNR/Bulk reserves are $100,000. So the following 4 amounts are shown for 1995:

Reserve Beginning: $1
Incurred During: $99,999
Paid During: $0
Reserve Ending: $100,000

However, for 1997 the reserve for the pollution claim is increased to $100,000 (an adverse development of $99,999). IBNR/Bulk year end reserves developed from $400,000 to $1,250,000 during 1997, and $100,000 was paid. So they show the following amounts for 1997:

Reserve Beginning: $400,000
Incurred During: $1,050,000
Paid During: $100,000
Reserve Ending: $1,350,000

This is the first instance where Reserve Ending does not match what is given as IBNR/Bulk reserves at year end (expressing the idea that Pollution is separate from IBNR/Bulk reserves). And at the very least, shouldn't Incurred During = (1,250,000- 400,000) + 100,000 (paid) + 99,999 (development on Pollution claim) = 1,049,999????

Sure, its a dollar, but they sure seemed to be picky about it during the 1995 year.



I'm just hoping they leave all these notes to the financial statement alone for future exams. No solid examples to go by, an poorly designed questions.

[jk]

You're right. The published exam solution is wrong.

Since the graded part of the problem involved only the years 1999 through 2003, the error didn't affect anybody's grade, but it causes confusion for later readers, like us.

Reserves = case reserves plus bulk reserves. There is a case reserve of $1 posted on 3/1/1994, and it remains on the books until it is increased to $100,000 on 7/7/1997. Bulk reserves are as given in the problem.

Clearly, EOY reserves for 1995 should be $100,001; and for 1996, $400,001. The incurred loss for 1997 should be $1,049,999, and from there foreward the published solution is correct.

[JollyGoodFCAS]

Originally Posted by Da Bears!

I'm just hoping they leave all these notes to the financial statement alone for future exams. No solid examples to go by, an poorly designed questions.

Notes has always been fertile ground for exam questions, especially since they have been one of the rare things on exams that I've actually done on my job. Happy studying....