Random Flashcards
1
Q
Incurred Losses Stat vs Tax
A
Statutory accounting: IL = Paid losses + Change in full value reserves.
Tax accounting: IL = Paid loss + Change in discounted reserves
2
Q
Why is there adjustment for investment income in RBC
A
RBC formulas use undiscounted values from AS. This adds extra margins for adverse conditions, which is reflected in RBC requirement in order to avoid being too conservative
3
Q
5 year historical
A
- written premium
- balance sheet–>identify components of the change in surplus
- risk based capital
- operating percentages
- one and two year loss development
