CIA Runoff Flashcards

1
Q

How to determine Excess (Deficiency)

A

(Discounted runoff) + (II during t on unpaid claims)

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2
Q

How to calculate discounted runoff

A

(discounted claims liab at t-1) – (paid losses during t) – (discounted claims liab at t)

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3
Q

How can be obtained the investment income (II) attributable to policy liabilities

A

(Yield Rate) x (Average Policy Liabilities)

APL = 
Net Unpaid Claims + 
Net Unearned Premium – 
Gross DPAC +
Premium Deficiency Provisions + 
Unearned Commissions – 
Agents, Brokers and PH's Receivables – 
Installment Premiums,
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4
Q

What does excess/deficiency ratio say ?

A

Indicates the adequacy of reserves at time (t-x)

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5
Q

Basic approaches to the evaluation of runoff of claim liabilities : Undiscounted basis

A

i. (ultimate amounts estimated at t-1) – (ultimate amounts estimated at t)
ii. (claims liabilities at t-1) – (paid losses during t) – (claims liabilities at t)

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6
Q

How to calculated excess/(deficiency) ratio

A

excess(deficiency) / opening reserve

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7
Q

Choice between Undiscounted basis formulas depends on:

A

1 - Available data
2 - Regulatory requirements
3 - Management requirements

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8
Q

How to determine Discounted claims liabilities ?

A

UCAE + IBNR

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