CAS Exam 6C Spring 2015, Question 21
Study guide: Exam 6C
The following information is available for a property and casualty insurance company. All amounts are in thousands of dollars ($000s).
Paid during calendar year:
| Accident Year | Calendar Year 2012 | Calendar Year 2013 | Calendar Year 2014 |
|---|---|---|---|
| 2012 | 88,000 | 25,000 | 8,500 |
| 2013 | 86,000 | 25,750 | |
| 2014 | 92,500 |
Discounted Claim Liabilities at the end of each calendar year:
| Accident Year | Calendar Year 2012 | Calendar Year 2013 | Calendar Year 2014 |
|---|---|---|---|
| 2012 | 103,100 | 66,625 | 56,750 |
| 2013 | 108,600 | 77,900 | |
| 2014 | 126,600 |
Other information:
- Annual investment yield for calendar year 2013 is 3.0%.
- Annual investment yield for calendar year 2014 is 2.8%.
Calculate the discounted excess or deficiency ratio found on the P&C-1 page 60.41 for accident year 2012 as at December 31, 2014.
Part a (1.25 points)
Answer this question and see the worked solution