CAS Exam 6C Spring 2014, Question 8
Study guide: Exam 6C
The Property and Casualty Insurance Compensation Corporation (PACICC) was established to protect policyholders and claimants in the event of an insurer insolvency.
Given the following information:
- Total amount advanced by PACICC in Ontario: $3,000,000
- Total amount recovered by PACICC from insolvent insurer and third parties in Ontario: $1,000,000
- Total PACICC assessment in Alberta: $300,000,000
- A and B are the only insurers with direct written premium in Ontario.
- C and D are the only insurers with direct written premium in Alberta.
| Insurer | Jurisdiction | Direct Written Premium ($) |
|---|---|---|
| A | Ontario | $325,000,000 |
| B | Ontario | $175,000,000 |
| C | Alberta | $500,000,000 |
| D | Alberta | $50,000,000 |
Determine the amount of the PACICC assessment for which insurers A and C are responsible.
Part a (1 point)
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