CAS Exam 6C Fall 2018, Question 21
Study guide: Exam 6C
Part a (0.25 points)
Describe the reason for the capital required for future premium risk being higher under the A.M. Best approach than the MCT calculation.
Part b (0.5 points)
Identify two company characteristics that would generate a low BCAR value.
Part c (0.5 points)
Identify one similarity and one difference between the covariance adjustment in the A.M. Best BCAR and the diversification credit in the MCT calculation.
No current syllabus covers this question; it is kept for the record.
Answer this question and see the worked solution