CAS Exam 6C Fall 2015, Question 25
Study guide: Exam 6C
The Canadian Institute of Actuaries' Standards Of Practice discusses the margin for adverse deviations.
Part a (0.75 points)
Identify the ranges for claims development, recovery for reinsurance ceded, and investment return rates.
Part b (0.5 points)
Briefly describe two situations in which a selection of margin for adverse deviation above the range would be appropriate.
Part c (0.25 points)
Briefly describe a situation that can support a claim development margin for adverse deviation below the specified range in part a. above.
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