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  #211  
Old 11-01-2019, 12:16 PM
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Quote:
Originally Posted by jimichanga View Post
If I remember correctly, the monthly modal premiums started in the middle of the month, paid through 2/15. So, $50 for 1/1-1/15 and $100 for 1/16-2/15.
Paid through 2/15 means insurer collected premium on both 1/15 and 2/15, so 200$

Or am I just dumb?
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  #212  
Old 11-01-2019, 12:16 PM
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did anyone calculate to get i in the FV-A question #2 last part,
i have:
[l40/l39 * (1+i)^(-1)+l41/l39 *(1+i)(-2)+l42/l39*((1+i)^(-3)]*Bnft Amt=reserving $ given

then annualized interest rate=(1+i)^12-1

however, the above equation would give something like ax^2+bx+c=0 to solve, which is timing consuming, so i just skip the calculatoin.
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  #213  
Old 11-01-2019, 12:19 PM
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Quote:
Originally Posted by xiaofan4 View Post
This is what I put for the last problem in FVA:
  • Policy 001: monthly modal amount of 100, last payment 12/16/19 date, paid thru 2/15/20
    for a total premium reserve of 250 = (50 UPR for 12/16/19 payment + 200 premium paid in advance for 1/16/20 and 2/15/20 payments).
  • Policy 002: quarterly modal amount of 300, last payment 12/16/19 date, paid thru 9/16/19
    for a total premium reserve of 300 = (300 due and unpaid for 12/16/19 payment).
  • Policy 003: annual modal amount of 1200, last payment 12/1/19 date, paid thru 12/1/19
    for a total premium reserve of 1100 = (1100 UPR for 12/1/19 payment).

I interpreted the paid-thru date as premium paid up to and including that date. Not sure if that was the right interpretation, or if these calculations are correct. Thoughts?
Absolutely same!!!
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  #214  
Old 11-01-2019, 12:20 PM
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Originally Posted by GSUACT View Post
isnt the question ask the reserve needed as of 12/31/2019?
so why the 3rd policy would need a UPR?
I interpreted the same way he did and said you needed an unpaid premium reserve (an asset) for the two weeks of coverage not yet paid for.
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  #215  
Old 11-01-2019, 12:24 PM
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Originally Posted by GSUACT View Post
does anyone recall how EV diff from Statutory and GAAP respectively?
and how Canada diff from US or Asia requirement on EV? i recalled seeing it somewhere in the source material, but not looks like not on Mate manual, so cann't really piece it together to my mind during the exam
1. I just said how they differ in terms of assumptions and how the goal of each basis was different and who was responsible to set accounting principles for each (FASB, IFRS, IASB)

2. I just said there may be some reconciliation to due in terms of currency exchanges and differences in terms of interest rates / required capital level
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  #216  
Old 11-01-2019, 12:26 PM
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Quote:
Originally Posted by GSUACT View Post
did anyone calculate to get i in the FV-A question #2 last part,
i have:
[l40/l39 * (1+i)^(-1)+l41/l39 *(1+i)(-2)+l42/l39*((1+i)^(-3)]*Bnft Amt=reserving $ given

then annualized interest rate=(1+i)^12-1

however, the above equation would give something like ax^2+bx+c=0 to solve, which is timing consuming, so i just skip the calculatoin.
Because the payments are at the start of the month, there are only two payments remaining after the t=39 payment. (I set up the way you did initially but then realized that couldn't be right because it resulted in having to solve a cubic.)

I got 0.5%, but am just now realizing that was a monthly rate and needed to annualize to get 6ish%.
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  #217  
Old 11-01-2019, 12:29 PM
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Quote:
Originally Posted by Bassooner View Post
Because the payments are at the start of the month, there are only two payments remaining after the t=39 payment. (I set up the way you did initially but then realized that couldn't be right because it resulted in having to solve a cubic.)

I got 0.5%, but am just now realizing that was a monthly rate and needed to annualize to get 6ish%.
39th payments was at t=39

3 payments at the beginning of each month at t=40,41,42

Because benefit period ends at 6+36=42 months

Is this wrong?
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  #218  
Old 11-01-2019, 12:31 PM
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I feel like DPA was so subjective
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  #219  
Old 11-01-2019, 12:33 PM
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Quote:
Originally Posted by DarchArvor View Post
39th payments was at t=39

3 payments at the beginning of each month at t=40,41,42

Because benefit period ends at 6+36=42 months

Is this wrong?
The 42nd month is from time 41 to time 42, so the last payment happens at t=41.
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  #220  
Old 11-01-2019, 12:45 PM
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Originally Posted by Bassooner View Post
The 42nd month is from time 41 to time 42, so the last payment happens at t=41.
Would make sense because reserve was 3600 which is a reasonable present value of 4000 (2000x2)

I hope I get some partial credits even tho I added a month
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