I don't think Feldblum even used the phrase "Underwriting Profit" anywhere in
the Asset Share paper. Hard to know what to do on the exam when it asks you
to do something that's not in the paper.
Underwriting Profit to me, and consistent with every paper on the syllabus,
means no discounting. When I saw that the question asked for U/W Profit I
assumed it meant no discounting. So, I wrote a little note next to my
solution that since it asked for Underwriting Profit I didn't use
discounting.
Regarding the NCCI stabilizing value, I used the B formula. Seems like a
totally ambiguous question to me.
They should just pass everyone.
----------
From: aact@shore.net
To: Schrah,Michael F.; studygroup6@lists.casact.org
Subject: Re: after exam
Date: Monday, May 11, 1998 2:24PM
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.
>
>
>
Actuarial Department
AIB of Massachusetts
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