CAS Exam 6C Spring 2019, Question 24
Study guide: Exam 6C
Part a (1 point)
The Canadian Institute of Actuaries' Standards of Practice specify the ranges of MfAD. Identify the ranges for the claims development MfAD and the investment return rate MfAD and for each, briefly describe one situation where the margin can be selected outside of these ranges.
Part b (1 point)
Briefly describe four desirable risk margin characteristics.
Answer this question and see the worked solution
Concepts tested
- Margin for Adverse Deviations
- Risk Adjustment for Non-Financial Risk
- Risk Margin
- Standards of Practice