Cantin and Trahan

Question 1

Cantin and Trahan - Define policy liabilities

Answer 1

cost of running off unexpired portion of insurer’s policies and reinsurance contracts

Question 2

Cantin and Trahan - Categories of policy liabilities

Answer 2

future claims and adjustment expense on inforce policies, costs of servicing inforce, anticipated premium adjustments, reinsurance expense or commision adjustments

Question 3

Cantin and Trahan - Define EQUP

Answer 3

equity in unearned premium: expected profits on unexpired poicies

Question 4

Cantin and Trahan - Max DPAE asset

Answer 4

cannot exceed the EQUP

Question 5

Cantin and Trahan - DPAE approximation

Answer 5

(Paid Acquisition Costs / Written Premium) * Unearned Premium