A5. Odomirok 12 Flashcards Preview

TIA Exam 6 > A5. Odomirok 12 > Flashcards

Flashcards in A5. Odomirok 12 Deck (7):

Written premium section setup

Shows gross and net premiums by 5 lines:
-Property and Liability
-All Other
-Non proportional


Written Premium uses/lookout for

Show changes over time:
-Business mix

Look out for:
-Rapid change in revenue
-Changes in level of reinsurance protection
-Increase in exposure to riskier lines
-Shifts from liability to property (CAT)
-Shifts from property to liability (uncertainty)


Balance Sheet

Helps identify the components of change in surplus
-Move to riskier assets
-Change in loss reserves, UEP, and surplus



Components of the RBC ratio


Operating percentages

Changes in ratio to earned premiums of:
-Other UW expenses


One and Two year loss development

Users decide if development is one off or sign of something bigger.
-Talk too mgmt
-Sched P pt 2
-10K report
-Notes to financial statements

Favorable development concerning to IRS (taxes) and investors (holding too much)


5 year historical exhibit use

Provides five years of historical data while other exhibits only provide two.