RE: cas solutions 1997 q43
Granowski, Glenda J. ( (no email) )
Tue, 6 Apr 1999 22:03:27 -0500
I look at three different solutions to that particular problem.
Two solutions used the combined premium for the extensions
One used the current premium
The ending relativities for all were identical.
I have a feeling that was more of a fluke then reality.
Finger uses current premiums for extensions
Finger says on page 264 "We use the premiums on current business rather than
the historical premiums, because we assume that this is the best estimate of
future premium volume by territory." Remember Finger wrote the article, he
is right. It is horrible to think that the exam committee could make an
error like this, but it could happen. Hopefully, the exam committee will
not make errors like that on this year's exam. Know Finger and all the
other articles.
Glenda
> -----Original Message-----
> From: bill g [SMTP:billg5@yahoo.com]
> Sent: Tuesday, April 06, 1999 9:22 PM
> To: study group 6
> Subject: cas solutions 1997 q43
>
>
> the cas published solution to 1997 question 43 finger confuses me. I
> wonder if the extension figures given in the solution are wrong,
> 531631,793445,433794,231752 for total 1990622. Murzda bases extensions
> on the current year premium times credible adjustments for total of
> 1060585 and off balance of 1060585/1050000
>
> any comments? any comments on page 6 errata mentioned in cas solution?
>
> thanks. bill.
>
> billg5@yahoo.com
>
>
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