CAS Exam 6C Spring 2015, Question 22
Study guide: Exam 6C
The following information is available from the December 31, 2014 P&C-1 of a property and casualty insurance company. All amounts are in thousands of dollars ($000s).
| Item | 2014 | 2013 |
|---|---|---|
| Net unpaid claims and adjustment expenses | 181,000 | 183,000 |
| Net unearned premiums | 61,500 | 55,500 |
| Unearned commissions | 0 | 0 |
| Premium deficiency | 0 | 0 |
| Deferred policy acquisition expenses | 7,500 | 6,750 |
| Instalment premiums | 54,000 | 48,000 |
| Receivables from policyholders | 8,000 | 7,500 |
| Payables to policyholders | 6,000 | 15,000 |
| Total equity | 82,500 | 67,500 |
| Net investment income | 10,000 | 10,000 |
Investment yield: 3.50%.
Calculate the Net Investment Income from Insurance Operations.
Part a (1 point)
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