CAS Exam 5 Fall 2018, Question 15
Study guide: Exam 5
Given the following:
| Claim ID | Accident Date | Transaction Date | Gross Amount Paid on Transaction Date ($) | Gross Ending Case Outstanding ($) |
|---|---|---|---|---|
| A | May 30, 2015 | December 24, 2015 | 1,000 | 550 |
| A | May 30, 2015 | August 1, 2016 | 500 | 225 |
| A | May 30, 2015 | June 1, 2017 | 725 | 0 |
| B | August 28, 2015 | August 29, 2015 | 300 | 1,050 |
| B | August 28, 2015 | February 6, 2016 | 600 | 375 |
| B | August 28, 2015 | June 14, 2016 | 450 | 150 |
| C | April 21, 2016 | April 25, 2016 | 1,200 | 575 |
| C | April 21, 2016 | March 3, 2017 | 700 | 250 |
| C | April 21, 2016 | December 1, 2017 | 200 | 0 |
| D | October 11, 2016 | October 12, 2016 | 400 | 900 |
| D | October 11, 2016 | May 17, 2017 | 800 | 625 |
| 60% | Quota share ceded percentage for reinsurance that applies to claims occurring in 2015. |
| $1,500 | Per claim excess of loss retention for reinsurance that applies to claims occurring in 2016. |
Part a (0.25 points)
Calculate calendar year 2015 reported claims, gross of reinsurance.
Part b (0.75 points)
Calculate calendar year 2016 paid claims, net of reinsurance.
Part c (0.75 points)
Calculate calendar year 2016 reported claims, gross of reinsurance.
Part d (1 point)
Calculate calendar year 2017 reported claims, net of reinsurance.
Answer this question and see the worked solution