Actuarial Notes

CAS Exam 6C Spring 2015, Question 5

Study guide: Exam 6C

An insured suffered severe brain injuries in a car accident as a result of another driver's negligence and will no longer be able to work. The insured's future income is estimated to be $2 million.

Part a (0.5 points)

Describe how the cap established by Supreme Court of Canada in the Trilogy cases will be applied in the situation described above.

Part b (0.75 points)

Identify three rationales behind the establishment of the cap in part a. above.

Part c (0.75 points)

Briefly discuss three of the arguments presented in the case of Lee v. Dawson that support the removal of the cap.

Part d (0.5 points)

Briefly discuss the two arguments used by the British Columbia Court of Appeal to uphold the cap.

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