CAS Exam 6C Spring 2017, Question 18
Study guide: Exam 6C
Part a (1 point)
Briefly describe two reasons for a reinsurer to commute a claim and two reasons for an insurer to commute a claim.
Part b (1 point)
Claims subject to commutation have expected cash flows that extend into the future. Briefly describe two financial and two non-financial considerations associated with the future cash flows in the settlement of these claims.
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