CAS Exam 6C Spring 2016, Question 27
Study guide: Exam 6C
For OSFI's earthquake preparedness test, Probable Maximum Losses (PMLs) have historically been based on the greater of the British Columbia or Quebec PMLs.
Part a (0.5 points)
Briefly describe two disadvantages of this approach.
Part b (0.5 points)
Compare how PMLs should be reported to OSFI for foreign and Canadian insurers when there is earthquake exposure outside of Canada.
Answer this question and see the worked solution