Re: Almagro/Ghezzi question

Esther Wei ( esther@actuarial.icbc.com )
Mon, 2 Nov 1998 14:46:41 -0800

The smaller one should be used. My reason is that the discounting=20
factors should be at least larger than 50%. In other world, only a
small portion of the "Change in Loss and LAE reserve" should be add
to Statutory Income. 9.5 is too much.

Esther

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=46rom studygroup7-return@casact.org Mon Nov 2 14:16 PST 1998
From: "Oswald, Apryle" <aoswald@calfarm.com>
To: "'studygroup7'" <studygroup7@lists.casact.org>
Subject: Almagro/Ghezzi question
Date: Mon, 2 Nov 1998 13:57:19 -0800
=04

I was curious as to how many of you interpreted "Change in Loss and=20
LAE reserve discount" for this question on the exam (question # 51).=20
In the discussion threads (when they worked), there seemed to be a=20
disagreement as to how this was treated. Some people just used the=20
1.5 as the addition to Statutory Income to get RTI and some used the=20
difference between the change in reserve and the 1.5 (in other words,=20
9.5). Does anyone know for sure which is correct?