CAS Exam 6C Spring 2017, Question 25
Study guide: Exam 6C
Part a (1 point)
The Canadian Institute of Actuaries' Standards of Practice specify the ranges for margins for adverse deviation (MfAD). Identify the range for claims development MfAD and investment return rate MfAD and for each, briefly describe one situation where they can be selected outside of these ranges.
Part b (1 point)
Briefly describe four considerations related to an insurance company's operations that an actuary should contemplate when selecting the claims development MfAD.
Part c (0.5 points)
Briefly describe two types of risk that the investment return rate MfAD would address.
No current syllabus covers this question; it is kept for the record.
Answer this question and see the worked solution