CAS Exam 6C Fall 2016, Question 28
Study guide: Exam 6C
Part a (0.25 points)
Define the term "subsequent event".
Part b (1.5 points)
The Appointed Actuary (AA) of an automobile insurance company is valuing policy liabilities as of December 31, 2015. The report date is February 19, 2016. For each of the following events, identify whether it is a subsequent event and explain any actions that the AA should take.
- i. The AA received a notice on March 1, 2016 that a large claim was reported in 2015 but was missing from the data.
- ii. The AA has been notified on January 15, 2016 that one of the unregistered reinsurers went insolvent because of gradual deterioration. The reinsurer insured less than 0.5% of the insurer's ceded business.
- iii. Court has settled a claim on January 28, 2016 which will retroactively impact all accident benefit claim amounts.
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