CAS Exam 6C Spring 2018, Question 22
Study guide: Exam 6C
Part a (1 point)
Fully describe data quality as an underlying factor of A.M. Best's Capital Adequacy Ratio (BCAR) assessment of a property and casualty insurance company's catastrophe risk management capabilities.
Part b (0.5 points)
Explain the rationale for testing for a second catastrophic event in the BCAR model for the natural catastrophe stress test.
Part c (1 point)
Identify and briefly describe two key factors influencing A.M. Best's level of tolerance regarding the decline in the stress-tested BCAR score.
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