CAS Exam 6C Fall 2014, Question 21
Study guide: Exam 6C
Part a (0.5 points)
The difference between the supervisory target and the minimum MCT ratio of 100% is intended to provide for risks not explicitly addressed in the calculation of policy liabilities or the MCT. Identify two such risks.
Part b (0.5 points)
Describe OSFI's expectations when a property and casualty insurer anticipates that its MCT ratio will fall below its internal target and remain above the supervisory target.
Answer this question and see the worked solution