CAS Exam 6C Fall 2016, Question 21

Study guide: Exam 6C

Part a (1.5 points)

Identify and briefly describe the three categories of risks considered in A.M. Best BCAR.

Part b (1.25 points)

Describe the calculations that are performed in the BCAR model for the natural catastrophe stress test.

No current syllabus covers this question; it is kept for the record.

Answer this question and see the worked solution

Concepts tested

• Best's Capital Adequacy Ratio
• Rating Agency
• Key Financial Measures
• Capital Required
• Probable Maximum Loss

More questions from this set

• CAS Exam 6C Fall 2016, Question 20
• CAS Exam 6C Fall 2016, Question 22