CIA Runoff Flashcards
1
Q
CIA Runoff - Methods of deriving undiscounted runoff
A
compare ultimate incurred amounts at successive valuation points; use amounts paid during CY plus change in amount outstanding
2
Q
CIA Runoff - How to calculate discounted runoff
A
discount paid and change in outstanding to beginning of year; or subtract provision for investment income earned during the year on assets supporting liabilities
3
Q
CIA Runoff - Calculate investment income on assets supporting policy liabilities
A
yield rate mulitillied by avg of starting and end values of: net unpaid claims, net unearned premium, minus gross DPAC, premium deficiency, unearned commission, minus agents and brokers receivables, minus installment premiums
