CAS Exam 6C Spring 2019, Question 16
Study guide: Exam 6C
The following information is provided for a federally-regulated property and casualty insurance company as at December 31, 2018. All amounts are in thousands of dollars ($000s).
| Item | Value |
|---|---|
| Net undiscounted policy liabilities | 34,500 |
| Net discounted policy liabilities excluding PfADs | 31,600 |
| PfADs | Value |
|---|---|
| Claims development | 4,100 |
| Recovery from reinsurance ceded | 220 |
| Investment return rates | 150 |
Other information:
- The reserve carried in the P&C Annual Return is $37,000.
- The future income tax rate is 35%.
Part a (0.5 points)
Define the asset for future income taxes.
Part b (1 point)
Calculate the estimated effect of discounting the asset for future income taxes.
No current syllabus covers this question; it is kept for the record.
Answer this question and see the worked solution