CAS Exam 6C Fall 2018, Question 13
Study guide: Exam 6C
The following information is available for two property and casualty insurance companies operating in Canada as at December 31, 2017. All amounts are in thousands of dollars ($000s).
| Direct Written Premium for PACICC Protected Policies | Alberta | Other Jurisdictions | Total |
|---|---|---|---|
| Company A | 200,000 | 100,000 | 300,000 |
| Company B | 100,000 | 0 | 100,000 |
| Total Participating Insurers | 10,000,000 | 20,000,000 | 30,000,000 |
- Amount advanced by PACICC to and on behalf of insureds of Company B: 100,000
- Amount recovered by Company B from third parties after liquidation: 50,000
Part a (0.75 points)
Identify three main causes of property and casualty insurer insolvency in Canada.
Part b (1 point)
Calculate the annual PACICC assessment to be borne by Company A.
Answer this question and see the worked solution