Actuarial Notes

CAS Exam 6C Spring 2016, Question 29

Study guide: Exam 6C

Part a (0.75 points)

Identify three desirable characteristics of a risk margin.

Part b (3 points)

For each category, identify two considerations and explain how they would affect the selected margin in each of the following category:

  • i. Claims development
  • ii. Recovery from reinsurance ceded
  • iii. Investment return rates.

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