CAS Exam 5 Spring 2017, Question 3
Study guide: Exam 5
Given the following information about two claims:
| Claim Number | Accident Date | Transaction Date | Incremental Payment | Ending Case Reserves |
|---|---|---|---|---|
| 1 | January 1, 2015 | January 1, 2015 | $0 | $20,000 |
| 1 | January 1, 2015 | January 1, 2016 | $25,000 | $0 |
| 2 | April 1, 2015 | July 1, 2015 | $0 | $50,000 |
| 2 | April 1, 2015 | October 1, 2015 | $25,000 | $75,000 |
| 2 | April 1, 2015 | April 1, 2016 | $100,000 | $20,000 |
Part a (0.5 points)
Calculate the incurred losses for accident year 2015 as of May 1, 2016.
Part b (1 point)
Calculate the incurred losses for calendar year 2015 and calendar year 2016.
Part c (0.5 points)
Briefly describe one advantage and one disadvantage of calendar year aggregation.
Answer this question and see the worked solution