CAS Exam 6C Fall 2013, Question 12
Study guide: Exam 6C
The following information is provided for two insurance companies:
| Company A | Company B | |
|---|---|---|
| 2012 Written Premium | $7,800,000 | $15,000,000 |
| % Growth in Premium in 2012 | 15% | 5% |
| Years since inception | 7 | 12 |
| Number of jurisdictions | 2 | 10 |
Part a (1 point)
Identify and briefly describe two risks that could lead to the wind-up of an insurance company.
Part b (1 point)
Using the information above, discuss which company would be considered a higher risk for wind-up.
Answer this question and see the worked solution