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> From: Andrew Chu <akchu@hotmail.com>
> To: studygroup6@lists.casact.org
> Subject: Finger question : 1997 , Q43
> Date: Thursday, April 30, 1998 4:47 PM
>
>
> Hi everyone,
> I had a quick question on this loss ratio relativity problem. In
> Finger's text, when doing the Balanced adjustment, he uses "Current
> Business Premium" to extend the credible adjustment. This obtains the
> off balance factor that is incorporated into the balanced adjustment.
>
> Here's my question: In the 1997 cas answer key, it looks like they used
> Combined EP to extend the credible adjustment. In the CSM manual,
> Murdza uses current year earned premium. Now, neither one exactly
> matches the Finger exhibit- I would have thought that using Current
> Premium as a proxy would be sensible. Right now, however, I'm more
> interested (for may 8th) in doing things the way the CAS exam commmittee
> thinks they should be done. Does anyone have any suggestions or
> conclusions? (the cas answer key's balanced adjustment also seems
> odd...)
>
> Thanks.
> A.C.
>
>
>
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