CAS Exam 6C Fall 2013, Question 17
Study guide: Exam 6C
The following is an excerpt from the actuarial opinion required by the Office of the Superintendent of Financial Institutions (OSFI), as part of the Annual Return.
| Carried in Annual Return ($000s) | Actuary's Estimate ($000s) | |
|---|---|---|
| Gross policy liabilities in connection with unearned premium | $150,000 | |
| Net policy liabilities in connection with unearned premiums | $134,000 | |
| Gross unearned premium | $176,000 | |
| Net unearned premium | $155,000 | |
| Premium deficiency | X | |
| Other net liabilities | 0 | |
| Deferred policy acquisition expenses | Y | |
| Maximum policy acquisition expenses deferrable | Z | |
| Unearned commissions | $1,000 |
The accounting department's initial estimate of deferrable expenses is $22,500.
Determine X, Y and Z in the table above.
Part a (1 point)
No current syllabus covers this question; it is kept for the record.
Answer this question and see the worked solution
Concepts tested
- Deferred Policy Acquisition Expenses
- Premium Deficiency
- Unearned Premium
- Statement of Actuarial Opinion
- Canadian Annual Return