D4. ASOP 20 Flashcards Preview

TIA Exam 6 > D4. ASOP 20 > Flashcards

Flashcards in D4. ASOP 20 Deck (4):
1

Payment timing

-actuary has to predict timing and magnitude of future payments
-assumptions and consideration should be same used to determine full value reserves
-consider sensitivity of timing
-timing of recoveries

2

Discounting rate options

-risk free rate
-portfolio approach is the anticipated return on a selected asset portfolio
-discount rates requested by another party

3

Disclosures

-assumptions behind selected rate
-difference between undiscounted and discounted rates
-whether the reserves(discounted) include a risk margin and basis
-significant limitations
-reliance on other sources

4

Recommended practices

-Beware of context in which discounted reserves will be used.
-significance of assumptions vary with undiscounted vs discounted