D6. ASOP 43 Flashcards Preview

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Flashcards in D6. ASOP 43 Deck (4):
1

Actions the actuary must take if constraints apply to the analysis which may potentially materially impact the results

-Notify the principal of the risk
-Communicate the constraints to the principal

2

Items regarding the unpaid claim estimate that need to be identified by the actuary

-Intended measure of the unpaid claim estimate, in addition to whether it is discounted
-whether the reserve is gross or net of specified recoverables
-extent of reinsurance collectability risk
-types of unpaid claim adjustment expenses included in the unpaid claim estimate
-the claims covered by the estimate

3

Items that need to be disclosed when deriving the unpaid claim estimate

-Intended purpose(s) of the estimate.
-Significant limitations
-Scope
-Accounting date, Valuation date and Review date
-Specific significant risks and uncertainties
-Significant events, assumptions or reliances that have a material impact on the estimate.
-Basis for the range
-If the estimate is an update of a prior estimate, changes of assumptions, procedures or methods that had a material impact

4

Factors that the actuary should consider when determining the appropriate method to derive the reserves:

-Purpose (internal analysis vs external reporting)
-Nature of claims and exposure
-Development characteristics of the claims
-Characteristics of the available data
-Applicability of various methods to the available data
-Reasonableness of the assumptions underlying the various methods