CAS Exam 6C Fall 2015, Question 16
Study guide: Exam 6C
The following information is available for a property and casualty insurance company as of December 31, 2015. All amounts are in thousands of dollars ($000s).
| Item | Amount |
|---|---|
| East Canada PML500 | 50,000 |
| West Canada PML500 | 200,000 |
| East Canada PML 420 | 30,000 |
| West Canada PML 420 | 120,000 |
The company has the financial resources of $50,000 to support the insurer's earthquake risk.
Part a (1.25 points)
Calculate Earthquake Reserves Component.
Part b (1 point)
Identify the four financial resources to support the earthquake risk.
Part c (1 point)
Identify and briefly describe two principles of earthquake risk management other than Financial Resources and Contingency Plans.
Answer this question and see the worked solution