CAS Exam 6C Spring 2017, Question 26
Study guide: Exam 6C
Part a (0.75 points)
Identify three considerations in determining the interest rate used to discount policy liabilities.
Part b (1 point)
Describe how the following two situations can be addressed when calculating an interest rate to discount the policy liabilities of an insurance company:
- i. Positive net cashflow
- ii. Negative net cashflow
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