RE: Re: after exam

jnielsen@amre.com
Mon, 11 May 1998 13:04:38 -0500

I answered this question using the formula [ A(p) + C + w*A(e)]/[E(p) + C +
w*E(e)] because the definition of C is that it is a stabilizing value,
whereas B is based on C and derived from Table M. Since there was no
mention of table M in the question, I assumed this formula to be correct
and my answer was 1.468 (answer C).

driek@transre.com on 05/11/98 12:53:00 PM

To: aact@shore.net, studygroup6@lists.casact.org
cc: (bcc: Jill Nielsen/AmericanRe)
Subject: RE: Re: after exam

Did anyone else do the question on the NCCI Experience Rating? It was
numero
19 on multiple choice. They did not indicate which formula to use yet the
answer (from A-E choices) mattered depending on which one chosen. Any
comments?
It was the one where the stablizing factor was either C or B?
DR
-----Original Message-----
From: aact [SMTP:aact@shore.net]
Sent: 11 May 1998 17:46
To: Riek, David; studygroup6
Subject: Re: after exam

I also thought the exam was pretty straightforward. Did anybody else not
use the discounted numbers in Feldblums problem because it asked for
Underwriting Profit? I showed discounted numbers, but ended up using
non-discounted since they asked for Underwriting profit.
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Actuarial Department
AIB of Massachusetts