Casualty Actuarial Society (CAS) Exam 6 Practice – All Questions

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Understanding how to determine the risk-bearing portion of total capital for insurersWhich items should be subtracted from total capital to derive the amount subject to the cost of holding capital?What defines events subsequent in financial reporting and why the timing mattersWhat defines 'events subsequent' in financial reporting?When an amended opinion should include an explanation of changes and a revised dateThe amended opinion must accompany which two elements?Why the insolvency clause is a standard feature in most reinsurance agreementsWhich provision is commonly included in most reinsurance contracts?

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The amended opinion needs to be accompanied by which of the following?
Reciprocal insurers, or insurance exchanges, are defined as groups that
Interrogatory 6 topics address whether the insurer reports claim counts per claim or per claimant. Which Interrogatory covers this topic?
What is the main purpose of Interrogatory 1?
Which statement is an argument against expanding the NFIP to offer optional wind coverage?
Premium deficiency reserve is recognized when which condition occurs?
When premium depends on future events, which premium concept best captures the risk transfer in the analysis?
Before issuing a subpoena to obtain information, the Director of the FIO must make which written finding(s)?
Which of the following is NOT a factor influencing the optimum level of regulation?
Which program is an example of the government acting as exclusive insurer?
Which statement defines a subsidiary?
What does ratio 9 measure?
What is the indirect tax impact formula of incurred losses on underwriting income?
What is true about the NFIP's risk management approach?
What is the core aim of the US Regulatory Mission regarding policyholders?
What is the threshold at which the insurer must disclose certain details about unsecured reinsurance recoverables?
The asbestos/environmental exposure notes require a table containing information for the past five years for asbestos and environmental separately and also separately for direct, assumed and net. Which data element is included in that table for each year?
What were the two changes made to the crop insurance program in 2000 to address concerns?
Which of the following is not included in pricing a commutation?
What are the two sections contained in the new Part 6 of Schedule F?
Equation for Loss Concentration Factor?
What does Schedule Y Part 2 provide?
What is the retroactive date?
Within 5 days of the appointment of the actuary, the insurer must provide to the Commissioner which information?
When is the Actuarial Report due?
How are tabular discounts treated in Part 1?
Which policy types are referred to by the abbreviations PPA and HO in this material?
How is the 2-year loss ratio defined?
What is the typical tabular discount rate used in SAP loss reserve discounting?
List exceptions for which the McCarran-Ferguson Act will not apply.
How is investment gain treated in Part 3 Interrogatories?
Which are sources of the R3 charge?
What term is used for reserves for unpaid losses and LAE combined?
Which states use a single servicing carrier for underwriting, services, and claims in Beach and Windstorm Plans?
Which criterion states that the loss event should occur by chance rather than by design?
Which factor is listed as a consideration in the rating process?
What is a contingent commission?
Which statement about voting rights is true for preferred stocks relative to common stocks?
Which statement matches GAAP valuation rules for investment assets?
Which of the following is NOT among the listed benefits of reinsurance?
Which statement describes the RBC charge for a directly owned alien affiliate?
Which of the following is NOT listed as a concern of Peripheral Asbestos Defendants?
Which balance sheet item is populated from Schedule F data?
Under adjusted carrying value, NAIC 1 and NAIC 2 bonds are valued at which measure?
Which formula represents RTI derived directly from incurred losses?
Criteria for a short duration:
Which statement correctly lists two reasons reserves are uncertain when growth is rapid?
Which statement is true about Schedule P in intercompany pooling?
How are reserves shown in the Balance Sheet?
AMTI equation: which expression is correct?
NOT a stated use of credit-based insurance scores?
What qualifies as 'substantially all' risk transfer in the described approach?
Which statement describes a unique characteristic of how insurance pricing works, where rates are set before actual costs are known?
What is the purpose of Schedule DL?
Which statement is NOT among the five reasons for government participation in insurance?
Which best describes the general structure of crop insurance programs?
Which measure addresses remapping by communities under the Flood Insurance Reform Act of 2012?
Which of the following describes the two ways commutations distort the financial statements?
Which is a stated purpose of the financial interrogatories?
In SAP, retroactive reinsurance treatment is described by which statement?
Liquidation of an insurer refers to
What building code requirement applies to eligible properties?
Which RBC level corresponds to a 100%-150% ratio range?
What is the RBC factor for Class 4 Preferred Stock?
Which statement best describes the Balance Sheet?
TRIA's applicability is limited to which lines of insurance?
In retroactive reinsurance, the term 'retroactive reinsurance reserve assumed' refers to which action?
Define redeemable preferred stock.
Which practices were prohibited by the Clayton Act of 1914?
Which of the following are requirements of the notification and transparency provisions for credit scoring?
Which is NOT listed as a factor that may lead a regulator to believe a company is in hazardous financial condition?
What is the RBC factor for Class 2 bonds (High credit quality)?
Which category describes a Treaty reinsurance that transfers the whole class or type of business written?
What percentage is used for recoverables over 90 days overdue in provisions for unauthorized reinsurer and authorized non-slow paying reinsurer?
How is the ceding commissions ratio defined?
How does intercompany pooling work?
What are the two parts described in Schedule Y?
One fear that drove the creation of state funds was:
Which statement defines control?
Which items are included in the CAS Working Party recommendation about criteria for reasonably self-evident risk transfer?
Which statement describes a direct outcome of the Omnibus Act on insurance fraud?
In the usual priority classes of asset distribution, which is the third item?
For lower rated redeemable and perpetual preferred stock, the value is the minimum of which two values?
Which of the following is a potential complication during rehabilitation?
Which requirement does the risk management functional area include regarding the internal model?
When reliance on another source is stated and responsibility is not accepted, which element must be disclosed?
Which statement best describes a contract of adhesion?
Which of the following is a reason settlement rates may reduce?
What is the cap on the total charge factor after applying the asset concentration adjustment?
Which item is NOT listed as a federal regulation affecting the insurance industry?
Which option represents stage three in the described three-stage regulatory process?
Which of the following transactions requires regulatory approval?
RBC charge under market valuation approach is calculated as which expression?
Which of the following is an external control relevant to governance processes?
Which filing type permits no filing of the rate or coverage?
In RAND's findings, nonmalignant injuries account for what portion of growth?
Novations are accounted for as which type of reinsurance agreements?
In Part 7, which section covers net earned premiums on loss sensitive contracts, in the same format as Part 6?
Shifts from property to liability lines (more uncertain reserves) in the Five-Year data exhibit indicate which potential risk?
Which of the following is NOT listed as an exception to the RBC charge for reinsurance recoverables?
Under ratemaking principles, a rate is considered reasonable and not unfairly discriminatory if it is what?
What is the normal range for 2yr Reserve Development to PHS?
Under McCarran-Ferguson, federal regulation applies in which situations?
Which of the following is NOT listed as a criticism of Schedule F?
Which statement describes the RBC charge for an indirectly owned alien affiliate?
In securities lending, which strategy is commonly used by borrowers?
First 50 issuers, weight is what in the bond size adjustment?
What is the formula for Expected Reinsurer Deficit (ERD)?
Which of the following is an advantage of RRGs during hard markets?
If AMTI / RTI > 150%, which action should be taken?
Reasons the Change in Incurred Loss & LAE note is important?
What is the indirect impact of profit commissions on risk transfer?
Under IFRS, which statement best describes an insurance contract?
Which statement describes conditional payment?
Regarding asset risk, which statement is true about its relative size for P&C versus life insurers?
In the equation to derive current year's surplus from the prior value, which expression is correct?
Which of the following is NOT an approach to determine risk margins?
What is the reported average pension loss per worker due to bankruptcies?
Which of the following was one of the purposes achieved by NAIC bills introduced after McCarran-Ferguson?
Which of the following is a level of regulatory action used to control financial difficulties?
Which statement describes a problem in the initial implementation of Medicare Set-Asides (MSAs)?
Which of the following is a service of Insurance Advisory Organizations?
Which option describes how federal agencies interact with insurers because they administer federal laws that apply to the insurers?
Loss sensitive discount factor for direct and assumed business?
What is the recommended method to determine earned premium evenly over the year?
Liquidation is best described as
Which document provides a snapshot of assets and liabilities at a given date?
Which item is the third level in the hierarchy applying to accounting rules?
Which of the following defines excessive growth, per the threshold?
Describe what a 'covered agreement' is in this context.
Why is R0 excluded from the covariance adjustment?
What acronym does FAWG stand for?
Why does assumed business have a lower loss sensitive discount factor?
Which option addresses catastrophe risk within treaty categories?
Direct RTI from revenue offset is:
Which is a qualitative disclosure example?
Which act addressed insurance fraud by establishing a multi-state approach to anti-fraud activity?
Define portfolio reinsurance.
Why are insurers subject to market discipline?
Which of the following is part of the NAIC accreditation review process?
Which is a state-level example of government partnering with private insurers?
When data cannot be reconciled to Schedule P, which action is most appropriate for the actuary?
Under the dividends received deduction, what portion of dividends are tax exempt when the taxpayer owns between 20% and 80%?
During rehabilitation, what is compared to assess the insurer's financial health?
Why are high ratings important for surety contracts in construction?
Which of the following is a service provided by Insurance Advisory Organizations?
Tabular discounts are often applied to which type of claims?
What is the normal range for Investment Yield?
Which statement best describes the factor preceding nearly all major insurer failures and why?
In the risk of material adverse deviation disclosures, which element is explicitly listed?
Which statement about reinsurance and reserve adequacy is true?
Which statement correctly describes fair value in relation to historical cost?
AMIT equation: which expression defines AMIT in terms of AMTI?
What is the RBC factor for aggregate write-ins for invested assets?
Which statement correctly describes when written premium is recorded and the exception for this rule?
Which RBC level corresponds to a 70%-100% ratio range?
How should ceded premium payable be recorded?
Which of the following is NOT listed as a concern of Peripheral Asbestos Defendants?
NAIC stands for which organization?
Which criterion states that losses must not be catastrophic and depend on underwriting actions?
Which of the following correctly lists the four RBC action levels and their ratio ranges?
Which item is NOT a component of Requisite Authority?
Which of the following is a question the actuary may have about the disputed balances?
How do GAAP and IFRS treat catastrophe reserves?
Dividends to policyholders become liabilities at which event?
In Part 1, how are non-tabular discounts treated?
Which question is raised about guaranty funds shifting liability to others?
The RBC charge for reinsurance recoverables is applied after accounting for what adjustment?
What are the two steps of the regulatory intervention procedure following an insolvency?
Which item is listed as a cause for economic regulation?
Receivership is a type of bankruptcy in which
Which property type is considered uninsurable under FAIR?
Which of the following is NOT listed as an area of debate about the trust fund approach?
What does the Flood Insurance Risk Map (FIRM) indicate?
Which of the following is listed as a state reform to improve the tort claims process?
Which question asks whether the NFIP should cover all claims associated with catastrophic losses, or only those in an average annual loss year?
Why is the asset risk charge generally smaller for property and casualty insurers compared to life insurers?
Which statement best describes the relationship between premium deficiency reserve and income?
Which regulator action involves seeking a court order to place an insurer under conservatorship, rehabilitation, or liquidation?
Which element requires that the insurer can verify the amount of a claim for settlement?
What is a reason to set the discount rate above the risk-free rate in risk transfer analyses?
Which entry corresponds to Part 4 in Schedule D?
How were capital standards initially developed by rating agencies?
When uncollectible reinsurance is written off during the year, which item must be disclosed?
How are the materiality standards compared based on tasks and practices?
Which is NOT a function of Insurance Industry Trade Associations?
Which statement best describes how the discount rate should be chosen in a risk transfer analysis?
Which statement describes the doctrine of reasonable expectations?
What do Notes to the Financial Statements provide?
Which item is NOT typically evaluated during onsite exams?
If the personal tax rate increases, what happens to the after-tax cost of double taxation?
Which statement best describes the 'substantially all' requirement for risk transfer?
Under Dodd-Frank, which committees must be advised regarding preemption actions?
In the written premium portion of the Five-Year Historical Data Exhibit, which observation suggests a potential concern?
If an insurer uses tabular discounts, which disclosures are required?
Which item is included in Underwriting & Investment Expenses?
What does the Scope paragraph contain?
Which item is a line item allocated to Part 2 of the IEE?
Historically, what has been the major criticism of insurance regulation?
Which of the following is an example of a program where government has subsidized losses?
Which Part of Schedule P documents loss and premium data on loss sensitive contracts?
Schedule B lists mortgage loans (secured by real estate) owned by the insurer. Schedule B lists which type of assets owned by the insurer?
Which are the three sections of Part 5 as described?
Which question addresses misperceptions about the NFIP and barriers to public understanding about flooding?
The discounting notes require disclosure of changes since prior year in key assumptions used to calculate the discount. Which option reflects this requirement?
In the Loss Concentration Factor, which is the numerator?
What are the two components of the total gain from bonds?
Under the U.S. Constitution, state laws can be void if they interfere with federal law although the state law does not expressly contradict the federal law
Receivership is best described as
Which interpretation matches losses on investments, change in mix of invested assets, or declining yield on investment assets?
Which of the following is an internal control relevant to governance processes?
Which statement illustrates the reason why apparent government insurance savings might be overstated?
Why is IFRS more transparent than GAAP?
How is the run-off agreement accounted for?
What conclusion did the GLB Financial Services Modernization Act reach regarding regulation?
Which of the following is not one of the six principal functions of reinsurance?
Which of the following provides evidence that the US regulatory system has been successful?
IFRS applies to insurance contracts to which extent?
Which is an example of insurer-specific request based on business written?
Historical cost is defined as which of the following?
Under IFRS, investment assets must be grouped into which categories?
Which of the following are considerations actuaries need to take into account when calculating reserves?
In some states, which additional perils may be covered under FAIR?
Which of the following is NOT an activity listed for the first few months of liquidation?
What cap is applied to each accident year’s loss & LAE ratio before averaging?
What must the notes include for reinsurance accounted for as a deposit?
What percentage of credit reports contained errors according to Consumer Reports?
Which item is a reporting requirement regulators may impose on insurers?
Which of the following is a step in the five-step interactive rating process?
What is the purpose of the Financial Analysis Working Group (FAWG) in regulatory coordination?
What is the purpose of financial reporting?
Describe the Federal Trade Commission Act (FTC Act) of 1914.
Which option describes a federal regulation concerning discrimination in employment relationships?
How can a derivative qualify to be a "highly effective" hedge?
State regulators and the insurance industry recommended several reforms. Which of the following were among the recommendations?
If the actuary does not review a portion of a business that is outside the scope of his review, what should be done?
Which of the following is NOT listed as a method to derive the discount rate?
Fidelity coverage definition: Fidelity coverage covers the policyholder for a loss incurred due to the fraudulent act of specified individuals.
Under TRIA, which threshold defines Small losses?
Define double taxation in this context.
In liquidation, creditors are paid according to
Which regulator action addresses governance practice deficiencies identified by regulators?
Which factor related to reinsurance protection is a potential concern when reviewing the written premium section?
If the actuary is replaced, which actions must the insurer take?
What is the equation for GWP:PHS and its normal range?
Which of the following is NOT listed as a concern of nonseriously injured unimpaired claimants?
Which of the following is true about the Change in Incurred Loss & LAE note?
Which is a reason hazard mitigation is not always incorporated into risk management?
What must an actuary disclose regarding methods and assumptions?
Relating to Loss Adjustment Expenses, which statement is true?
In the RBC formula, how is the reinsurance recoverables RBC allocated between R3 and R4 under normal conditions?
The admitted portion of DTA under SAP equals which of the following?
Which of the following describes two things the actuary can refer to when opining on the collectability of reinsurance recoverables?
Indemnification of a ceding company exists only if both conditions are met.
Which of the following is a method to uniformly earn premium throughout the year?
The absence of other risk factors from the MAD list implies what about future risk factors?
Which term describes a disaster strategy beyond floodplain development management within NFIP?
In securities lending, what is a typical action by the borrower?
Indirect RTI from municipal bond income is:
In the company development factor calculation, losses are pulled from Schedule P Part 2. Which elements are used?
Which of the following is an area of legislative influence through noninsurance laws?
Which statement best describes the Solvency Capital Requirement (SCR)?
Which item is not reviewed in a financial examination?
What is TRIA's primary purpose?
What is the argument for expanding NFIP to offer optional wind coverage?
Why should collateral be invested in short-term, low-risk, highly liquid markets in securities lending?
If the reinsurer is unauthorized and recoverables are more than 90 days overdue, which provision formula applies?
What items are allocated to lines in Part 2 of IEE?
Which of the following is NOT reviewed in a financial examination?
Which statement describes the degree of rate regulation for Commercial General Liability?
How is the DTL arising from unrealized capital gains treated?
Which act is a federal workers' compensation program?
Which option reflects a reason volatility would increase under IFRS according to the material?
Which statement is true about the Actuarial Report?
Which sentence best reflects the Sample wording for the Scope paragraph?
TRIA was designed to stabilize the private market after which event?
Which statement correctly describes the explicit reflection of parameter risk?
The Summary of Significant Accounting Policies note is typically described as including which of the following?
Which statement describes discounting in Parts 2-4?
What is the main focus of SAP rules?
If reviewing a material portion and the analysis is reasonable, which is the correct action?
Which statement best describes offsetting under GAAP and IFRS?
Which RBC level corresponds to a 150%-200% ratio range?
Under disputed recoverables disclosure, which condition triggers disclosure?
Premium deficiency reserve is defined as
In the Identification Paragraph, which items are mentioned?
What is the purpose of NAIC's Financial Analysis Working Group (FAWG)?
Base NWP RBC formula states RBC equals what?
Which events should already be reflected in the financial statements?
Which of the following is an issue with using Part 2-4 information to develop losses?
Ratio 2 measures what?
When are the additional premium for endorsements and changes in coverage recorded?
What is the RBC factor for off-balance sheet items under the securities lending program?
Which area was created due to consumer complaints?
Which line of business is associated with high rating importance?
How should management book the reserve if there is no range?
Disclosure necessary when entering into a structured settlement?
Which of the following is NOT one of the stated goals of assessing the financial condition of an insurer?
Interrogatory 1 topics include the first question about whether the endorsement was offered for free or at a reduced rate. Which endorsement is referenced?
What approach should regulators adopt to regulate a market as big as the US insurance market?
Which of the following is a reason premiums in Part 6 of Schedule P may change over time?
NOT a feature of a typical State Insurance Regulatory System?
What does ratio 7 measure?
Which asset category uses the asset pre-conversion value in its formula?
Which of the following is a reason for low investment yields (ratio 6)?
Which of the following is NOT part of the NAIC accreditation review for a state seeking accreditation?
RBC charge for Replication (Synthetic) Assets is calculated as:
How is the Industry RBC% derived?
NOT listed as a reason to avoid large mortgage investments?
Which statement about SAO disclosures is true?
Which item would typically be included under General & Administrative expenses within the U&IE framework?
What is the formula for average claim severity?
Why has grouping multiple plaintiffs and defendants increased costs and complexity?
Which statement about balancing regulatory costs vs benefits is accurate?
Which agency is NOT listed as producing credit ratings?
Describe the liability adequacy test.
Which statement is true about ceded reinsurance when evaluating finite reinsurance?
What does Dodd-Frank dictate about placement of non-admitted insurance?
Under the Dodd-Frank provision regarding credit for reinsurance, other states cannot deny credit if the home state is NAIC-accredited or has solvency standards similar to NAIC.
Which description best defines Mandatory Convertible Securities?
Which question addresses NFIP debt and potential forgiveness?
Under statutory accounting, incurred losses equal which of the following?
What is the premium concentration factor formula?
Which statement is true about allocation of charges?
Which method is based on the number of days of the policy that have expired?
Two criteria that departments of insurance look at when insurers seek a license are
Which of the following is a disadvantage for un-rated insurers?
Which statement is true about conservatism in SAP compared to GAAP?
Under the nonadmitted rules, when collateral is held, what is the status of deductible recoverables in excess of collateral?
At a minimum, ORSA must contain which of the following?
Type 1 events are recognized in the financial statements.
Which of the following is a regulator's task for its constituents?
In the CAS Working Party recommendations, what is the acceptable maximum for rate on line (premium to limit) to qualify as reasonably self-evident risk transfer?
Under NRRA, a state cannot deny credit for reinsurance if the domiciliary state has which of the following characteristics?
What happens to the insurer during rehabilitation?
What does Dodd-Frank allow in terms of charging premium tax on insurance from a non-admitted insurer?
Briefly describe the Sherman Act of 1890.
What is the purpose of the disclosures in the retroactive reinsurance notes?
Which item is not part of the bond investment income components in the Exhibit?
Which statement describes how State Legislatures influence insurance regulation?
The sample Scope paragraph references reconciliation to which Schedule for data?
Which statement about adjusted reinsurance premium due to a loss event is correct?
What is IEE?
Which statement describes a factor used to allocate expenses?
Which statement best describes how credit scores assist risk stratification?
Which factor primarily contributes to the ability to predict aggregate losses across a large pool of insureds?
Which of the following describes indictments against SEUA?
Which of the following is a use of the Disputed balances note?
What is the claims frequency equation?
Which statement about premium deficiencies being rare is true?
Which statement best describes the effect of stock dividends on total surplus?
What is the RBC factor for other long-term invested assets other than collateral loans?
Regarding the covariance adjustment, which statement is true?
What bond requirement led Virginia to deny a license to NY insurers in Paul v. Virginia?
Which area is addressed by the investment interrogatories?
A deteriorating loss ratio indicates which of the following?
Which two investment guidelines are permitted by the NAIC Model Investment Law?
How should management book the reserve when there is a range?
Which of the following is an example of what might be disclosed as 'special surplus generated' in retroactive reinsurance notes?
Which group uses financial strength ratings to place customers with higher rated insurers?
What is the concern about rate increases up to 20 percent per year under NFIP?
What is GAAP's main objective?
Which statement is true about non-RRG captives compared to RRGs?
Define net claim counts.
What is the normal range for Adjusted Liabilities:Liquid Assets?
Which act is associated with terrorism risk insurance?
Rehabilitation is described as
What is the normal range for Gross Agents' Balances to PHS?
If the largest line LAE reserves equal 50% of total LAE reserves, what is the Loss Concentration Factor?
Under TRIA, which threshold defines Large losses?
Which is a recommended practice under IFRS for risk margins?
Which line is described as having diverse coverages and classifications?
Which risk measures are used as part of capital standards, such as VaR, TVaR, or EPD?
Deferred premiums are defined as:
How is the value of bonds determined after purchase under the NAIC adjusted carrying value framework?
What criticisms did McCarty raise about the FTC Report?
RBC charge for bond investment in other non-insurance subsidiaries.
Which component is specifically the cumulative effect of changes in accounting principles?
What is the underwriting expense ratio used in the NWP RBC calculation?
Which of the following is an example of Adjusting & Other (A&O) expenses?
When there is a commutation, which item must be disclosed?
Which regulatory rationale is described for Private Passenger Auto?
What should a company with 0% share of a pool include in SAO?
Which component includes reserves and risk margin?
Which of the following best expresses the meanings of probable, reasonably possible, and remote?
Which of the following is NOT a cause of differences in laws between states?
If an actuarial document contains materially different results to a prior report from the same actuary, the later report needs to:
When determining if something is material, what are the two things necessary to study?
Describe the McCarran-Ferguson Act of 1945.
Which statement defines finite reinsurance?
Which item is included in Exhibit B: Disclosure?
When does the IEE need to be filed?
Which item must the CEO/CFO confirm in the reinsurance attest action supplement?
Which statement is a critic's argument against using credit-based scores in personal lines?
Which item was listed as an issue of contention after the Biggert-Waters Act?
Under Mandatory Corrective Action, which action is required?
What does the Income Statement show?
Deferred Tax Asset (DTA) is defined as which of the following?
In what situations should the insurer not make the company adjustment?
Portion of agents balances that is nonadmitted is:
What is an advantage of the multiperil homeowners policy covering flood risk?
Which statement describes how special surplus should be adjusted with changes in ceded reserve?
Which of the following is a type of check and balance in US regulation?
Which NAIC program was adopted in 1989?
Which statement about Ratio 1 is true regarding profitability?
What constant multiplier is used in the excessive premium growth charge formula?
What coefficient is used in the RBC charge for Mortgage loans?
Which is a reason to hold surplus beyond reserves?
The item ‘funds held by the company under reinsurance agreements’ on Schedule F is classified as which balance sheet item?
What is the overall purpose of the Schedule P Interrogatories?
The two primary sections in commutation accounting are labeled for which parties?
Which item is NOT an example of a high-level request that rating agencies may make during insurer meetings?
What is a captive?
Under the U.S. Constitution, state laws can be void if they impose an improper burden on interstate commerce, even though a federal law does not exist
What is the purpose of the trend test?
Which of the following is NOT a main category of expenses?
In risk transfer analysis, which formula correctly expresses the relationship between cash-flow duration, loss duration, and premium duration?
Which statement describes the three types of checks and balances?
What is the proper formula for the bond size adjustment factor?
What did the Supreme Court decide in Paul v. Virginia?
Which two actions by the Risk Management Agency subsidize the cost of the Crop Insurance program?
What are the 3 components of the fair value of reserves, according to the mark-to-model approach?
Which asset categories use Annual Statement value in their RBC charge formulas?
Which of the following is a criterion for reinsurer certification?
Which was identified as a principal cause of the 1970s product liability insurance price and availability crisis?
An increase in the provision for reinsurance is shown where in the financial statements, and what can it indicate?
Under the nonadmitted balances rules for high deductible recoverables, in the absence of collateral, deductible recoveries become nonadmitted when they are overdue by more than 90 days.
Which data source is used to derive the Industry RBC%?
Which option is NOT one of the three sections of Part 5?
Which of the following is an example of Adjusting & Other (A&O) expenses?
Which pair of grades represents AM Best's Superior category?
Which program is the federal-level private-insurer partner specifically associated with flood insurance?
According to Kucera, what is the effect on premiums if credit-based insurance scores are not used?
When there is a change in the key discount assumptions, which disclosures are required?
For not-signed releases, which statement about contingent liability disclosure is true?
Which principle emphasizes on-site risk-focused Examinations?
Which two Acts were recommended to be amended to permit cooperative rate-setting arrangements?
2 key questions considered by the court when deciding on SEUA?
Which statement does UEPR stand for?
Which factor should the actuary consider when there is insufficient historical data?
Which statement best describes commutation?
Which item is the first priority in asset distribution when an insurer is liquidated?
Which statement correctly lists one of the two conditions to charge a loss contingency/asset impairment to operations?
Actuary's action if the amount for a portion is immaterial: which statement is correct?
How is the uncollectible reinsurance written off?
Which Act represents a federal government intervention related to risk retention groups?
Who are the primary users of GAAP?
Why is judging qualitative aspects in capital requirements difficult for rating agencies?
RBC charge for reinsurance recoverables is what factor applied to reinsurance recoverable?
What is the formula for the loss reserve discount factor?
Which of the following is a reason that public data is insufficient for rating agency analysis?
Which statement is listed as a cause of regulatory forbearance?
The optimal relationship for AMTI to RTI is AMTI = RTI × ?
How is the data treated in Parts 2-4 of Schedule P?
In the Exhibit of Net Investment Income, what does 'interest due & accrued' represent?
Which branch handles criminal law in state regulation?
Which of the following is a question the actuary may have if the insurer has material credit risk exposure to a reinsurer?
Which of the following is a focus of a market conduct examination?
Which measure involves restricting or suspending the business that can be written or renewed?
What is a tail risk issue with Schedule P data due to time horizon?
Which statement correctly describes the three pillars of Solvency II?
In the rightmost column of the Prior Years Row of Part 2, what two components are added?
Which of the following is an external governance control?
In a reinsurance agreement, which reporting requirement ensures timely visibility of financial results for risk transfer?
In P&C ratemaking, a rate is defined as what?
Which statement best differentiates rehabilitation from liquidation?
The SAP admitted portion of DTA relates to loss carrybacks. Which term describes this concept?
If a dividend is declared but not yet paid, what is its accounting status?
How is the company average loss & LAE ratio calculated?
Which statement best describes the accreditation process goal?
Which of the following is NOT part of the three steps to determine liabilities under IFRS?
What is the major role of an actuary in preparing the income statement?
The 10-Q form is best described as?
Which of the following is NOT listed as a factor actuaries should understand about the unpaid claim being estimated?
Which statement best describes why actuaries should be familiar with the Discounting note?
Under TRIA, what percentage of insured losses is covered by the government after the deductible thresholds are met?
During the Fact Finding stage, regulators from several states do what?
Which of the following is an action described as part of NFIP's risk management approach?
Which statement about deposit accounting for the ceding company is false?
Which of the following is NOT a function of the Federal Insurance Office (FIO)?
Which components comprise the denominator 'case & invested assets between current & prior years' calculation?
Which factor was considered when determining whether insurance transactions across state lines constitute commerce among several states?
What is the RBC factor applied to off-balance sheet items (excluding securities lending)?
What does ratio 8 measure?
Define par value.
In all other states, which perils are covered?
Which of the following is considered when regulators determine whether to certify a reinsurer?
Which two assets must be adjusted in Part 8 of Schedule F?
What does the Change in Incurred Loss & LAE note disclose?
Which question would regulators ask to assess potential takeover readiness?
Which statement best reflects a consideration after deriving the unpaid claim estimate?
After licensure, regulators have the power to:
Which exhibit would you consult to analyze five-year trends in written premium and loss ratios?
What is the main purpose of off-site solvency monitoring?
What should the insurer do if it believes it is necessary to book a higher amount than what is indicated by the Provision formula?
Which two areas are cited as concerns with MSAs?
Which core principle refers to exiting the market and receivership?
Which statement about the formula for the rightmost column of the Prior Years Row is correct?
What is the primary purpose of insurance regulation?
What does U&IE show in intercompany pooling?
What effect does commutation have on risk transfer?
Under SAP, anticipated prospective reinsurance recoverables are recorded as:
Which item is a requirement of the compliance functional area?
Which item is not part of the listed financial risk factors?
Which item is disclosed under High Deductible policies?
Define reliable.
Why is a distributional shift likely to have a smaller effect on renewal business?
Which statement describes how the government acts as partner with private insurers?
What is the effect on the reinsurance recoverable for the ceding company when a commutation is settled?
Describe accounting treatment when stocks are issued.
Notes to the Financial Statements provide which type of disclosures?
What is the formula to derive realized gain when a bond is sold?
Which schedule is used to show data for testing reserve adequacy with respect to reinsurance collectability?
Which characteristic differentiates redeemable from perpetual preferred stock?
In state insurance law, which branch is responsible for administrative law?
In Part 7, which section contains the triangle of net reserves for premium adjustments & accrued retrospective premiums for each of the last ten years that the policies were issued?
Which expression represents the pretax profit formula?
Examples of other long term assets. Which item is listed as an example?
Which question addresses steps to manage rising flood risk and discourage overdevelopment in flood-prone areas?
Why should insurer ratings not deteriorate after IFRS despite higher volatility?
Which type of law does the state judicial branch mainly contribute to in insurance regulation?
Which action was introduced to improve flood maps under the Flood Insurance Reform Act of 2012?
What is the definition of the determination year?
Which statement correctly reflects a difference in DAC treatment between GAAP and SAP?
What best defines a loss contingency?
In the tax deferral model E = f(Y, T, L), which statement is true?
If collateral is held, what portion of the deductible recoverable in excess of collateral is nonadmitted?
Describe regulatory capture.
Which item must be disclosed for joint & several liability disclosures beyond the nature of the agreement?
What is the threshold for the 'small company' exemption in terms of premiums and reserves?
Which statement best describes a type of unfair or deceptive practice listed by the NAIC's Unfair Methods of Competition?
Which type of properties are covered by Beach and Windstorm Plans?
Disclosures about Type 2 events require which information?
When is the AOS due?
What does UEPR stand for?
What is the formula for the investment gain ratio?
If asbestos usage were to immediately cease, which would continue exposure?
Which statement describes a difference between RRG captives and non-RRG captives?
Which item is typically included in background materials?
What is the Real estate RBC factor?
Which criterion is most directly related to the pool size enabling predictable aggregate losses?
Which items are included under Other Underwriting Expenses in Part 1?
Which item relates to moving toward a comprehensive integrated watershed management framework of risk perception, risk management, and disaster response strategy?
What is the direct tax impact formula of incurred losses on underwriting income?
Can premium deficiencies in one group offset profits in other groups?
Which provision was introduced in the Flood Insurance Reform Act of 2012?
In calculating funds attributable to insurance transactions for a line, which expression is correct?
How do courts impact insurance regulation?
R0 charge for bond investments in Insurance Subsidiaries is calculated as which expression?
Under GLB, which statement best reflects how underwriting differs from sales and marketing?
Which question is raised about private sector involvement in financing flood risk?
Which of the following is a requirement of the risk management functional area?
What is a run-off agreement?
Which of the following is NOT a potential ground for rehabilitation?
Which is a way the government participates in state WC programs?
In the 1yr Reserve Development to PHS equation, what is divided by what?
Which of the following is a standard of Financial Regulation that must be met to be accredited?
Who handles all services, including claims, for MAIF?
Which statement is included in the Scope paragraph about data?
Which of the following is an area exempt from preemption?
Which of the following is NOT listed as an area impacted by certain accounting rules?
Which of the following is NOT listed as a change in the litigation environment since 2001?
What describes the role of rating bureaus in rate filings?
Which of the following is NOT a stated benefit of funds held or deposited with reinsured companies as collateral?
Which of the following is NOT listed as a factor affecting change in surplus?
Which expression is included among the UEPR tests for a Long Term contract?
Which of the following is a use of the claim count data from Schedule P?
What is Solvency II used for?
IASB's definition of significant insurance risk:
Pillar 3 (Supervisory Reporting/Public Disclosure) focuses on?
Under a ceded reinsurance contract, which condition triggers discussion in the interrogatories?
Which statement best describes GAAP vs SAP treatment of DTA?
If aggregate industry losses do not exceed $27.5B, how does the Treasury recoup its coverage?
If the claimant signs a release in a structured settlement, how is the settlement recorded?
Which issue concerns the accuracy of flood hazard maps and risk assessment methods?
If a Qualified Opinion is provided, which items must the actuary disclose?
Why is an insurer placed into receivership?
In Part 1, which grouping is used for reinsureds?
Which statement about credit-based scores is NOT accurate?
When would an insurer populate Part 7?
Which area is exempt from preemption related to antitrust or capital/insolvency rules?
How is the tax discount rate calculated?
Which of the following is not listed as a consideration when analysts compare companies' investment performance?
Which of the following is listed as a reason for asymmetry in the tax impact?
What disclosures are required for joint & several liability agreements?
Which statement describes a mechanism by which the government became a de facto regulator of flood-prone areas under NFIP?
Ratio 1 measures the adequacy of surplus on which basis?
How many questions are in the Schedule P Interrogatories?
Base NWP RBC purpose?
When is a Reinsurance Summary Supplement Filing required?
Which combination is required for funds held or deposited with reinsured companies to be admitted assets?
Which information is included in off-site monitoring information?
Describe the intended users of SAP and GAAP.
In years after the loss occurrence, which statement is true?
What is the normal range for the 2-year overall operating ratio?
How is EBUB recorded before and after the exposure is audited?
Which of the following is NOT listed as a concern of seriously injured claimants?
Which statement describes the required unsecured aggregate recoverables disclosure?
Which of the following is a method to allocate Other Underwriting Expenses?
Which statement best describes an implicit threat identified by CMS guidelines for reviewing MSAs?
Which statement describes the fortuitous or accidental criterion in insurable risks?
List 2 elements of the structure of the US regulatory system that allows other states to question a state, encourage improvement, and possibly pressure a domestic regulator to act.
If there is no specific contract with a due date for reinsurance premiums, when are they considered due?
Which of the following is the direct revenue offset expression?
Which elements should be documented for risk transfer determinations?
Which statement describes the Robinson-Patman Act of 1936?
Define gross paid-in & contributed surplus.
Schedule A provides details about what?
Which factor contributes to making losses reasonably predictable in a large insured population?
Regulators began overseeing insurer investments because what happened in the 1990s?
Which item is disclosed in the Reinsurance Assumed & Ceded section of notes?
What is the accounting treatment for a reinsurance premium that is adjusted due to loss event?
Which statement correctly lists the three subcategories of expenses within Underwriting & Investment Expenses?
If accident year loss & LAE ratios exceed 100%, what does that suggest about unearned premium reserves?
Which item is NOT a use of FEMA flood hazard maps for NFIP?
Why are nonadmitted assets not included in the surplus calculation?
In a soft underwriting market, large growth in written premium most strongly indicates which of the following?
How did the McCarran-Ferguson Act describe the return of insurance regulation to the states?
Which Part of Schedule P documents historical claim counts (closed with payment, open and reported)?
Which insurers are exempt from the RBC procedure?
If a reinsurance premium is paid prior to the contract's effective date, how should it be reported?
FAIR plan operations are described as which of the following?
Which of the following is a Part 5 section describing the status of claims?
Which statement about advancing premium is true?
Under IFRS, how are changes in market value for Available for Sale and Held for Trading investments recorded?
Under Regulatory Action Level, what actions are required by the DOI and insurer?
What is a defining characteristic of a group captive?
Which item is NOT listed as extensive background material requested by rating agencies?
What are some differences between Part 1 of IEE and Part 3 of U&IE?
How is Change in Adjusted PHS defined?
2 requirements to qualify a contract as a 'Long Term Contract'?
According to GAO, which item is a potential obstacle to offering wind coverage?
Which item is included in the annual report submitted by an insurance commissioner to the legislature?
Which statement best describes the role of documentation proving risk transfer in the attestation process?
Surplus is allocated proportional to what?
What is the purpose of guaranty funds?
Which group benefits from GAAP's focus on presenting accurate results?
Part 8 of Schedule F requires adjustment to assets and liabilities. How many of each are adjusted?
Which factor is explicitly listed as a consideration when determining the appropriate reserve method?
Which item is included in the Exhibit of Net Investment Income as a component of bond investment income?
Define common capital stock.
The investable funds associated with the line of business are composed of which items?
Type 1 (Recognized Subsequent Events) are events that
Which of the following is NOT listed as a reason for increasing claims filing rate?
Upon purchase of a bond, the asset is recorded at:
Under SSAP 5, liability is defined as which of the following?
Net investment income earned is primarily derived from which components on an accrual basis, net of investment income expenses and gross of taxes?
In the residual market, which entity is commonly authorized to serve it?
According to the material, bankruptcies lead to the loss of approximately how many jobs?
LAE stands for
Under what conditions can regulators perform exams more often than every five years?
In the Reinsurance Assumed & Ceded section of the Notes to the Financial Statements, which of the following is disclosed?
RBC charge for Investment Affiliates.
Who approves a AAA member as qualified for signing casualty loss reserve opinions?
Which statement describes the criteria for making a disclosure about loss contingency/asset impairment?
Which Schedule of A.S. describes the derivatives owned by the insurer?
Define derivative.
Which of the following is a reason users would be interested in the Reinsurance Assumed & Ceded note?
After McCarran-Ferguson, which area was NOT a regulatory focus?
Which is a basic purpose of a financial examination?
Which of the following is a stated limitation of Guaranty Fund coverage?
UEPR for a Long Term contract is the maximum of three tests. Which expression represents the first test?
Which of the following is NOT a type of check and balance?
In the context of insufficient historical data, which disclosure is appropriate?
Credit scores can be used to segment risks into homogeneous groups in two ways. Which of the following correctly lists these two uses?
Which issue concerns federal disaster assistance and moral hazard?
Which indicator suggests that a reinsurance contract may not transfer risk?
In Assigned Risk Plan processes, how does the insurer handle an application after it is rejected in the voluntary market?
Which of the following is NOT a responsibility of the Federal Insurance Office (FIO)?
What is an implication of RRGs being prohibited from participating in state guaranty funds?
Which option lists the four factors that could increase defense costs going forward?
Which of the following is a category of reinsurance contract?
What were the two changes made to the Crop Insurance Program in 2005?
Which term is used in Part 5, Section 2 as the denominator in average case outstanding severity?
What trend occurred in 2004-2005 for less severe medical conditions according to RAND?
What is portfolio reinsurance?
What expression is used to populate the rightmost column of the Prior Years Row of Part 2?
RBC charge for a directly owned alien insurance affiliate is equal to which expression?
Why do reinsurers prefer the Letters of Credit (LOC) form of collateral?
How is intercompany pooling impacting the A.S.?
For retroactive reinsurance, how are reserves recorded by the ceding company?
Define unassigned funds.
The initial free surplus requirement is defined as the amount of surplus a new stock insurer must provide above
What constitutes a credit-based insurance score?
In nondomiciliary states, traditional insurers and non-RRG captives are subject to:
According to LRRA, what is the primary intention of the act?
What role does the Dodd-Frank Act play as a first step toward federal involvement in insurance regulation?
Which of the following is a responsibility of NAIC's Financial Analysis Division (FAD)?
Which item is listed in the Premium Reserve section of Exhibit A: SCOPE?
Amounts withheld by the ceding company in a reinsurance arrangement are accounted as:
Which agency produces Financial Strength Ratings for life and P&C insurers?
Which criterion requires that losses be fortuitous or accidental?
Which part of Schedule P should be used to determine the loss payment pattern?
In a run-off agreement, the initial consideration paid is recorded as?
Distortions that commutation results to the loss triangles for the insurer and reinsurer: insurer distortions include which of the following?
Premium deficiency reserve calculation includes which components?
In which receivership type are creditors identified and assets distributed?
What approach does the NFIP take?
What does Ratio 6 indicate?
Why do tax calculations use Schedule P Part 1 instead of Part 3?
Under the U.S. Constitution, state laws can be void if they ?
Which policy question concerns burden sharing between the insured and the general public?
Which concern concerns actuarial soundness, program solvency and affordability within NFIP after Biggert-Waters?
Which is a factor to look into if Change in NWP ratio is unstable?
Underwriting Income formula.
What is the background of Paul v. Virginia?
Which statement about the RBC charge's credit risk components is correct?
Which of the following is an activity that needs to take place during the first few months of liquidation?
Changes in carrying value due to fair value changes under SAP are recorded as:
According to the notes, when is the name of the life insurer and the associated remaining payments disclosed?
To what extent can the FIO preempt state law?
What is the RBC ratio formula?
What are the two conflicting policymaker objectives?
Which formula correctly defines RTI derived from incurred losses using the indirect method?
Which statement about balancing regulatory costs vs benefits is true?
If the assuming insurer receives the premium prior to the effective date, how should it be recorded?
What is the accounting impact of reinsurance recoverable on unpaid losses?
Which of the following is a reason rating agencies are reluctant to change ratings too quickly?
What does regulatory forbearance describe?
Which of the following are exclusions from the definition of long duration contracts?
Why are insolvencies involving insurers writing in multiple states difficult for guaranty funds?
In Part 7, which section describes net loss & LAE unpaid and NWP on loss sensitive contracts, relative to all contracts, for each Schedule P line?
How is the Provision for Reinsurance treated in the Annual Statement?
Under Company Action Level, which actions are required by the DOI and the insurer?
Which fund finances the Black Lung Benefits Act program?
Why can't a yield curve be used to discount cash flows in a risk transfer analysis under SSAP 62?
Define 'subsequent events':
Which regulator action directly increases the insurer's capital and surplus?
In tail coverage contracts with a fixed period, what should happen to the premium?
Which of the following constitutes a material transaction that requires commissioner approval?
Another NRRA rule assigns what responsibility to the domiciliary state?
Which of the following is NOT a method to calculate the SCR?
Which item is FEMA’s responsibility regarding hazard maps?
How are common stocks valued after purchase?
Which of the following is NOT listed as a factor that may cause loss trends?
What is the cap on the company development factor by line?
Which formula represents the margin needed to compensate the lost yield as a percentage of premium (premium paid at inception, taxes midyear)?
For properties held for sale, the valuation is:
AM Best produces which type of ratings?
RBC charge for an indirectly owned alien insurance affiliate is equal to which expression?
Which of the following is an example of how NAIC staff supports state insurance regulatory officials?
Which statement describes how licensing differs for RRGs compared to traditional insurers?
In the valuation guidelines, the highest two ratings of perpetual preferred stock are valued at what?
Which of the following is a part of Schedule F?
Define relevant.
Which Schedule of A.S. describes detail about securities lending collateral assets, with the purpose of adding transparency about these assets?
Which sequence best describes the three steps to determine liabilities under IFRS?
In Paul v. Virginia, what happened to Paul after selling policies despite denial?
Allocated PHS stands for which of the following?
Which item is NOT listed under the general section interrogatories?
Which option is NOT listed as a regulator power after licensure in nondomiciliary states?
Which statement best describes the difference between Statistical Agents and Rating Bureaus?
Which of the following is an internal governance control?
What is the formula for Total adjusted capital?
Why do capital formulas differ significantly among rating agencies?
Which item is identified as an obstacle to wind coverage by GAO?
Which statement explains why some actuarial methods rely on judgement to select paid LDFs while the IRS method does not involve judgement?
Which NFIP issue is highlighted as a problem with participation?
Which statement is a reason for government participation in insurance?
Interrogatory 7 topics cover changes or anything special that the user needs to be aware of if she relies on the Schedule P data to assess the adequacy of recorded loss & LAE reserves. Which statement best captures this idea?
SAP treatment of nonadmitted assets in statutory surplus is best described as:
During liquidation, which item must be identified, sold, and collected?
Post-MCarran, regulators addressed unavailable or unaffordable insurance coverages with which of the following measures?
Which statement about the three components of liabilities under SSAP 5 is accurate?
Which is a requirement for claimants after an MSA is approved?
Which is an advantage of Historical Cost?
In homeowners lending, which statement best reflects why insurer ratings matter to lenders?
Which program operates as a federal partner with private insurers?
How is the initial gain from retroactive reinsurance treated in the ceding company's financial statements?
Which statement about tail coverage is true?
Schedule P includes voluntary and involuntary pools; what is a typical issue?
Which of the following correctly lists a component of Schedule P?
Which of the following is NOT listed as a change in the litigation environment since 2001?
Which type of receivership is described as safeguarding the insurer's assets while the regulator determines the best course of action?
Which item is specifically disclosed in the discounting notes?
Administrative Supervision involves requiring prior permission before actions such as mergers, asset transfers, or incurring debt.
Briefly describe why indictments against SEUA were initially dismissed.
If reserves are net of reinsurance, what must be disclosed?
Discounts included as a reduction to loss reserves are reported in Schedule P. Which option identifies Schedule P?
How are S&S expenses recorded?
In the regular tax environment, which type of bonds is preferable?
Notes for deposit-type reinsurance require what kind of schedule?
Which statement correctly describes the difference between competitive state funds and exclusive state funds?
Residual markets are designed to provide coverage when private markets are:
Under IFRS, a contract qualifies as an insurance contract when one party accepts a significant insurance risk from another party by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder.
Which statement accurately describes portfolio reinsurance?
Disclosures necessary if any of the used assumptions/methods are prescribed by law:
If the premium is after the effective date but prior to the due date, how should it be recorded?
Which filing type allows using the rate or coverage immediately after filing?
Which of the following is NOT an example of Defense & Cost Containment (DCC)?
Which best describes a High Deductible policy?
Which source would best show increased exposure to catastrophic or large events?
In the ratio 'Gross Agents' Balances to PHS', what is the numerator?
Which statement about NFIP rates is true?
Historically, which of the following was a reason for why only a few states had fraud departments?
In rehabilitation, creditors are satisfied from the insurer's
Which two aspects of credit risk are included in the RBC charge?
Under disputed recoverables disclosure requirements, which statement is correct?
Next 50 issuers (51-100) weight is?
What is the relationship between credit scores and expected insurance costs?
What is the economic income equation?
Which statement correctly pairs the three pillars with focus?
When using a rate higher than the risk-free rate in cases where the reinsurer has a higher expected investment yield, which concern is most relevant?
Which item is the second level in the hierarchy applying to accounting rules?
Which Schedule would you consult for information about the insurer's ownership structure and holding company relationships?
In a soft underwriting market, large growth in written premium may suggest which of the following?
Who bears the operating losses and expenses of the Reinsurance Facility?
Which of the following statements concerns the types of unpaid claim adjustment expenses included in the unpaid claim estimate?
Which option correctly lists the three categories of off-balance sheet items included in the R0 charge?
Which statement about a contract of adhesion is correct?
Which of the following is NOT listed as a concern of Insurers & Reinsurers?
RBC charge for bond investment in a parent company.
Which of the following is NOT commonly included as a contract provision in reinsurance contracts?
Type 2 (Nonrecognized Subsequent Events) are events that did not exist at the accounting date.
How are derivatives that do not qualify for hedge accounting treated?
What does the Opinion paragraph contain?
Which statement is true about gross paid-in & contributed surplus?
Surplus Lines insurance is defined as what?
Which statement accurately reflects uninsurable property under FAIR when considering building codes?
Which area does the rating process emphasize?
Which is NOT a reason the insurer should not withhold damaging data?
Which of the following is NOT a TRIA goal?
Which statement is listed as a public data insufficiency related to investment schedules?
Which implication applies to governments in markets where insurance purchase is mandatory?
Are loss reserves for high deductible policies net or gross of the deductible?
What is the formula for the company development factor by line?
Which expression represents the equation for the 2-year overall operating ratio?
Which of the following is a commonly cited criticism of rating agencies?
How are unpaid losses treated with respect to S&S in recording?
For the ceding company, a gain or loss from a commutation is recognized as what?
Which accounting method is based on market value adjusted for ownership percentage?
Which statement would be used to express an unconditional opinion?
Under FIO authority, information collection requirements may include what?
Define commutation.
Which item is not typically included in a market conduct examination?
Which of the following is an area that accounting rules can impact for actuaries?
How many ways does the government participate in state workers' compensation programs?
Which option should be included when mass tort exposure exists?
Which statement best defines a run-off agreement?
Which line is described as having a highly uniform stat plan with credible rate data?
Which option lists all governance conditions to be addressed by the insurer's governance structure?
What is a compliance responsibility of insurers regarding guaranty funds?
Which factor causes differences in laws between states?
Why are high ratings important for structured settlements?
Why are disclosures about retroactive reinsurance important?
Under Market Regulation, which activity corresponds to the administration of residual markets?
Which of the following is a not-eligible condition due to legal compliance?
Which of the following is NOT listed as a reason why defense costs for peripheral defendants may be considerably higher?
Which of the following is NOT an advantage of Model Laws, Regulations, and Guidelines?
Define materiality.
Which regulations outline SEC reporting requirements?
Which step follows the lead analyst presenting the proposal in the interactive rating process?
Which two views of financial health do statutory financial statements provide?
What is the purpose of a Buyer's Guide in the post-McCarran era?
Which statement supports the proponent view that credit scores are necessary in underwriting or rating?
How should Type 2 events be accounted for?
Which factor in materiality standard relates to reinsurance protection on reserve development?
What approach did regulators determine is best to achieve this Regulatory Mission?
Which requirement ensures the insurer can determine the exact loss amount for settlement?
Under tax accounting, earned premium is EP = WP - 80% * Change in UEPR. Which equation expresses EP under tax accounting?
Pillar 2 (Supervisory Review) provides which capability?
In the US three-stage regulatory process, which is stage two?
Which statement correctly describes reserve required in relation to premiums earned and the ratio of reserves:premium?
One- and two-year loss development sections: what triggers concern?
How is the asset concentration factor derived?
In the margin formula, what is the exponent on (1 + investment yield) in the denominator?
Which is not a feature of a typical State Insurance Regulatory System?
What is the RBC factor for Cash, net cash equivalents, other short-term investments?
What do 'Other realized adjustments' include?
Which statement describes the regulatory environment across states?
Which item is listed as an inherent weakness in the credit reporting system?
In state regulation, what does the acronym DOI stand for?
RBC charge for non-government money market funds equals 0.003 x book/ adjusted carrying value of stock
Ratio 1 is affected by direct vs assumed business because:
Which expression correctly represents the base loss and LAE reserve RBC charge?
Interest due or payable on funds held under reinsurance treaties should be recorded as:
What level of reserves is the appointed actuary opining on?
Under SAP, the non-tabular discount is capped at the minimum of which yields?
Overdue Authorized Reinsurance is a category under which Schedule F item?
Which is an example of a high-level request?
Define structured settlements.
Regulation S-K requires a tabular analysis of changes in aggregate reserves for unpaid claims and claim adjustment expenses for the latest how many periods?
Direct RTI from unaffiliated common stock dividends is:
What does RBC stand for in this context?
Which statement best describes rehabilitation?
Which condition would render a property not eligible for Beach and Windstorm Plans?
Which statement is NOT listed as a reason Schedule T is useful to actuaries?
What is the purpose of the Common Interrogatories section?
If there is insufficient information to conduct an analysis or determine the materiality, what is the actuary's appropriate action?
Which item is a component of risk-focused surveillance, according to regulators?
What is ACL?
Which statement describes the FAIR plan's risk-sharing arrangement?
Which lines are excluded from Guaranty Fund coverage?
What are the two components of investment income from common stocks?
In a reinsurance contract, which term describes the reinsurer's responsibility for losses from reinsured policies in force at termination?
What is unassigned surplus?
What does the 10-10 rule require?
Which question concerns affordability of insurance coverage in the era of actuarial premium pricing?
Which of the following is NOT an activity of the National Conference of Insurance Legislators (NCOIL)?
Which is NOT part of the current definition of the business of insurance?
Capital changes & surplus adjustments include which of the following?
In crop insurance, who sells and services the policies?
Which term is used in Part 5, Section 3 as the denominator in average reported claim severity?
Difference between SAP and GAAP treatment of structured settlements when the claimant is the owner and payee, but has not released the insurer?
When a range exists and no amount stands out as the best estimate, what amount should be booked?
Which statement about Illustrative wording for a reasonable opinion is true?
What is the formula for closure rate?
Which organization issues Flood Insurance Risk Map (FIRM)?
For Ratio 2, which scenario is more concerning?
Which risk was explicitly added to the RBC modification?
In the 2-year reserve development to PHS equation, the divisor is what?
Which of the following is a method by which government has the capacity to subsidize losses?
Which item is a metric that can be calculated from Part 5 data to perform reasonableness checks on unpaid claim estimates?
Accounting treatment of premium deficiency reserve results in which effect?
In determining the due date of reinsurance recoverables, which step comes first?
Which IRIS ratios would the actuary discuss if the ratios have exceptional values?
Which of the following is a use of Schedule P beyond assessing reserve adequacy?
What is the denominator for the investment gain ratio?
Which area is listed as a major form of legislation related to consumer protection and risk sharing?
Which statement about RBC (risk-based capital) is true?
When the amount of coverage under a reinsurance contract changes, which action describes the handling of the initial premium?
What is the formula for average reported claim severity?
What is the stated purpose of the Company RBC%?
Which of the following is an example of an item that should be disclosed in an actuarial report?
Syndicated LOC is defined as:
Which of the following is NOT listed as a non-invested asset that receives an R3 charge?
What is the final output of the five-step interactive rating process?
Which of the following is NOT included in off-site monitoring information?
Which act is associated with flood insurance?
Which item is allocated as a line item in Part 2 of the IEE?
To be insured with MAIF, which condition is required?
In valuation of real estate, which item is subtracted after applying depreciation to reflect encumbrances?
Which of the following describes the requirements to be a 'qualified actuary' for signing casualty loss reserve opinions?
How is reinsurance assets impairment treated?
What is the primary purpose of credit-based insurance scores?
Unaffiliated bonds RBC factors: Class 1 highest credit quality use 0.000 for US government bonds guaranteed by the US government. What is this factor for such bonds?
Under tabular discounts, which option represents all potential disclosures?
What is a key feature of the bankruptcy protection process used by some defendants?
Under statutory accounting, if the Change in UEPR is positive, the earned premium will
Which document contains management's discussion about changes in incurred losses and is used for reserve adequacy assessment?
Which of the following is NOT a consideration actuary has after deriving the unpaid claim estimate?
Which statement explains why high ratings are important for reinsurance?
What action should be taken to account for tail coverage reserves when tail coverage is provided at no charge?
Why is it necessary to disclose the potential asbestos/environmental exposure?
Which entity is responsible for issuing rating downgrades in the credit markets?
The revised AOS should clearly state that it is an amended document and include a revised date. Which option reflects this requirement?
What is described as Method 2 for nonadmitted assets?
What does actuary need to include if the insurer participates in an intercompany pooling arrangement (SAO)?
Why is it important to monitor closure rates?
Under GAAP, which asset category has changes in fair value recorded as income?
Which receivership type is described as a tool to fix problems, protect assets, run off liabilities or prepare for liquidation?
In securities lending, the lender is exposed to which risk?
What is a NAIC concern about using IFRS as the basis for SAP?
Under SAP, which statement describes the valuation of investment assets?
What is the definition of Free Surplus in this framework?
The Atkinson & Dallas formulae are used to reflect which cost component?
Which NAIC program was implemented in 1969 to address insurer insolvencies?
Which statement about top-down approach is true?
Regarding revenue recognition, how is revenue recognized under GAAP vs IFRS according to the material?
Accounting treatment of uncollectible reinsurance.
List some problems that may arise if expenses are not accurately allocated.
Which list of perils is covered under FAIR in its general form?
Upon purchase of common stocks, the asset is recorded at:
Which item reflects changes to the Manville Trust Distribution Process (TDP) and state reforms imposing medical criteria to make a claim?
Which of the following is one of the core principles of the US Insurance Financial Solvency Framework?
Intention of the Solvency Modernization Initiative self-evaluation for insurance solvency regulation?
What is the CWP ratio defined as in loss reserving metrics?
Under the FAIR plan, which statement about risk sharing is correct?
SAO stands for which term?
What are the components of the P&C RBC formula?
What type of risk does the RBC charge R1 reflect?
Which of the following is a motivation to enter into a commutation?
Which question do policymakers typically ask when considering intervention in private flood insurance markets?
The asbestos or environmental claims disclosure requires which items?
Which of the following is NOT a role of NAIC staff in supporting regulators?
Before the FIO preempts state law, which of the following describes the required preemption steps?
What is the RBC charge formula for a holding company?
Interrogatory 2 topics cover whether LAE is defined as DCC and A&O.
Which procedure is used to test whether there is a significant loss for the reinsurer?
Which of the following is used in off-site solvency monitoring information?
Under the Authorized Control Level, who is authorized to take control of the insurer?
Which of the following is NOT a factor to consider when determining the appropriate method to derive reserves?
Which accounting method is based on the statutory equity, adjusted for any unamortized goodwill, and adjusted for ownership percentage?
How is surplus treated in Part 8 of Schedule F when adjustments are needed?
Which of the following is NOT listed as a non-invested asset that receives an R3 charge?
How did the judge respond to the four challenges about Florida's credit score limits, and what did he say about 'disproportionate impact'?
Which asset category among the listed has the highest RBC factor?
What are the two main categories of expenses?
What is the threshold amount used in the due date rules that triggers the special 'paid recoverables' date?
Which of the following is NOT listed as a concern of seriously injured claimants?
Disclosures necessary if the used assumptions/methods are prescribed by law:
Which statement describes an effect of guaranty funds on consumers?
Describe deposit accounting for the assuming company: if total losses are valued upwards, what should be recorded?
Which statement is true about disclosures when unsecured reinsurance recoverables exceed the threshold?
Which two sections of Schedule F Part 6 contain collateral-related provisions?
NAIC operating expense classification includes how many types?
Which characteristic ensures losses are definite and measurable for an insurance contract?
Explain the implications of IFRS requiring unbundling of contracts with both insurance and investment features.
In liquidation, creditors are paid according to
Ratio 3 measures what concept?
Why are profit commissions excluded from the risk transfer analysis?
What type of data does the rating agency collect during the interactive meetings?
Amounts recoverable from reinsurers include which of the following?
How does a change in the Provision impact surplus?
Who funds the no-fault asbestos trust established for claims?
What is the second step in determining liabilities under IFRS?
Which of the following is listed as an example of poor decision making that has led to insolvencies?
Which item is included in the annual report submitted by the state insurance commissioner?
Part 7 consists of which two parts?
Which changes did NAIC implement to Schedule F in 2012?
Which statement correctly defines commutation?
If ceding commission > Anticipated Acquisition Costs, what is the accounting treatment?
Retroactive reinsurance is best described as
What were the two key questions considered by the court regarding insurance across state lines?
What is the first step in the top-down approach used by rating agencies?
One view on insurance compacts is that they can be in the public's best interest if they prevent insolvencies. Which option best expresses that view?
Under surplus lines laws, who is accountable for placing surplus lines business?
Which statement describes the degree of rate regulation and rationale for Inland Marine?
Indirect RTI from dividends is:
What is the formula for Investment Yield?
How many types of Statement of Actuarial Opinion are described?
Which factor is explicitly listed as a cause of loss trends?
Which item is part of the current definition of the business of insurance?
Exhibit B includes net reserves for losses and expenses the company carries including which categories?
Which item is included in underwriting & investment expenses?
Which statement describes exclusive state funds?
Pillar 2 (Supervisory Review) provides which capability?
Which items must be disclosed regarding loss contingency/asset impairment?
Which of the following is NOT a listed trigger for Form 8-K?
The LRRA provides what type of regulation for RRGs?
Which of the following is NOT listed as a concern in Block 9 (Explain why defense costs for peripheral defendants may be considerably higher)?
In portfolio reinsurance, what does 'surplus relief' refer to?
Which approach is recommended for deriving projected loss payment patterns?
Which of the following is a question the actuary may have about the Uncollectible Insurance note?
Which of the following is a factor management considers when deciding portions of stocks versus bonds to hold?
Which statement about SAP goodwill is true?
Which statement describes the degree of rate regulation and rationale for Ocean Marine?
Which of the following is NOT listed as a factor in the reasons for increasing claims filings?
Which of the following is NOT listed as a section in the Common Interrogatories?
RTI direct from municipal bond income is:
Policies that do not transfer significant insurance risk should be accounted for as:
Which of the following is NOT a type of change actuaries should look for when analyzing trends?
Which of the following is NOT a method to allocate Other Underwriting Expenses?
Which is NOT a reason that it is difficult to shut down a troubled insurer?
Which statement best describes the purpose of an onsite exam?
Within ten days after replacement, what must be provided to the Commissioner?
Which Schedule would you consult to identify where the company writes business in order to research state insurance laws?
Under the stated basis of reserve presentation, what does 'Types of LAE covered by the reserve' refer to?
What is one difference between a Risk Retention Group and a Group Captive?
Given the prohibition on state guaranty funds, what is a primary economic incentive for RRGs?
What is the formula for the Value of the Business in Force (VBIF)?
What does Schedule P reflect in intercompany pooling?
When entering into a structured settlement, if aggregate value of annuities from a single life insurer exceeds 1% of the surplus, what must be disclosed?
What are the two parts of Part 7?
Which of the following is NOT listed as having influence on insurance regulation?
Which statement about Pillar 3's relationship to Pillars 1 and 2 is correct?
Which component is the topmost in the hierarchy applying to accounting rules?
Which of the following is a metric used to assess the level of regulatory success?
Which of the following is a LRRA requirement for a Risk Retention Group (RRG)?
Which of the following is NOT a stated duty of the internal audit functional area?
Which of the following is NOT a type of check and balance in US regulation?
Which of the following is NOT a liability that must be adjusted to zero in Part 8 of Schedule F?
What is true about uncollectible reinsurance?
What is a concern about how the economic crisis would affect overall insurance costs and prices?
Which statement describes the types of commissions that an insurer needs to accrue?
Which statement describes a potential owner of a Risk Retention Group (RRG)?
Which statute governs the risk transfer attestation discussions described here?
GAAP treatment of goodwill?
Which of the following is NOT a required disclosure when deriving the unpaid claim estimate?
Which statements describe the two criteria used to classify a transaction as having risk transfer?
In novations, the amount paid by the assuming insurer reduces which item?
Which statement best describes ORSA?
Accounting treatment for disputed balances with an affiliate.
Which explanation is cited for the low market penetration of NFIP?
Which of the following is a catastrophe-related benefit of reinsurance?
RBC charge for Unaffiliated Common Stocks equals 0.15 x book/ adjusted carrying value of stock
Define premium deficiency.
In intercompany pooling, how is Schedule F used?
Prepaid legal expenses plans are recognized as income when?
Which of the following is NOT a section in the Common Interrogatories?
RBC charge for non-invested assets (excluding investment income due & accrued) is calculated as what?
What does Schedule Y Part 1 describe?
Illustrative wordings for a reasonable opinion include which statement?
Which method has been used to phase out premium subsidies for Repetitive Loss Properties (RLPs)?
Which item is a requirement under Mandatory Corrective Action related to premiums?
Rehabilitation of an insurer is defined as
Why is the square root used in the covariance adjustment to derive RBC need?
What does the doctrine of reasonable expectations state?
Which of the following can be used to base the loss distribution?
Which of the following is NOT a reason an insurer rated by AM Best might seek another rating from a different agency?
Which statement best describes the FAIR plan?
Which statement about nonadmitted assets is true?
What is the formula for the Adjustment for Company Experience in the RBC framework?
What is the minimum single terrorist act loss amount to be eligible for TRIA coverage?
Uncollected premiums & agents' balances are defined as:
Which of the following best represents benchmarks of regulatory performance?
Which statement describes a disadvantage of guaranty funds to insurers?
Under run-off accounting, the transfer increases the reinsurance recoverable contra-liability by the amount of reserves transferred.
Which item is considered a non-admitted asset in insurance financial reporting?
Residual flood risk behind levees has led to what behavioral concern?
Which statements describe how to account for the risk load in risk transfer analysis?
From which Schedule P section are the net loss and LAE reserves taken for the base RBC calculation?
What is the correct description for the line 'Other income less other expenses' in Part 2?
Which of the following is a fundamental regulatory objective of the NAIC?
Accounting treatment of retroactive reinsurance between affiliates: how is the consideration paid treated?
If investment yield = 5%, corporate tax rate = 30%, and personal tax rate = 20%, what is the after-tax cost of double taxation?
One of the tasks of the special deputy liquidator is to
Under novations, the obligations assumed by the assuming insurer are recorded as which of the following?
What factor indicates increased concerns about fraud in asbestos claims?
What is the main purpose of SAO?
Which of the following is NOT listed as a concern of Major Asbestos Defendants?
Which expression represents the prepaid expense formula?
Which branch handles administrative law in state regulation?
If the reserve was based on risk margin, what must be disclosed?
Which framework is generally more conservative to protect policyholders?
RBC charge for bond investment in insurance subsidiary not subject to RBC.
Which scenario would CMS review an MSA?
In the valuation guidelines for redeemable and perpetual preferred stock, the highest two ratings of redeemable preferred stock are valued at what?
Which statement is a proponent argument for using credit-based insurance scores in personal lines?
What are the two classes of reinsurance contracts?
What is the observed relationship between credit scores and claim frequency among consumers as described in the material?
Which statement defines an affiliate?
Under the Dodd-Frank Act, when is the FIO authorized to preempt state measures?
Two ways RMA subsidizes the cost of the crop insurance program.
Portion of tax-exempt income taxed due to proration provision?
If the insurance purchaser meets the definition of an exempt commercial purchaser, which of the following describes when the surplus lines broker does not have to satisfy the state requirement to conduct a due diligence search for admitted insurance?
In Part 1 of Schedule P for losses, which category corresponds to Fidelity & Surety?
Which of the following was a change made to the National Flood Insurance Program (NFIP) by the Biggert-Waters Flood Insurance Reform Act of 2012?
In the calculation for reserves as of the previous year used to derive the Part 3 prior row, which operation is applied to Part 2 and Part 3?
LAE stands for which of the following?
Hedge accounting treatment.
How do Schedule P and Schedule F differ in pooling treatment?
In states other than LA and MS, who issues and services Beach and Windstorm plans policies?
Since Hurricane Sandy, policymakers have paid more attention to which of the following areas?
What is the normal range for Change in PHS?
Defense costs accounted for what percentage of payments in RAND's asbestos study?
Which of the following is NOT listed as a concern of Major Asbestos Defendants?
When a bond is purchased, what does the initial cost include?
Which statement is correct regarding salvage and subrogation treatment under SAP versus GAAP?
Which of the following is a reason settlement rates may reduce?
What did Florida do in 2003 regarding credit-based scores for PPA and HO?
When industry data or another company's data were used, what is essential about the data?
What does ratio 13 measure?
Which program is an example of government-subsidized losses?
Which statement best describes the Prudent Person concept?
What is the five-day notification requirement after actuary replacement?
Which option describes the non-admitted EBUB rule?
Advance premium is recorded as which balance sheet item?
Which of the following best describes the effect of a downturn in the economy on vulnerable populations' credit scores?
What is a pricing implication of strongly capitalized reinsurers?
How is finite reinsurance defined?
What was the immediate effect of the SEUA decisions?
Accounting treatment of flat fees: where are they recorded?
Which of the following is NOT a level of government participation in insurance?
Which statement describes a general industry mechanism for rate regulation?
How many categories of off-balance sheet items are included in the R0 charge?
Which statement lists the two necessary criteria to charge a loss contingency/asset impairment to operations?
Which statement describes the rate regulation for Private Passenger Auto?
Which statement best describes the effect of slowing settlement rates when not reflected?
Bond types included in the bond size factor adjustment?
Under the Mandatory Control Level, what action must the commissioner of the domiciliary state take?
How were LAE expenses historically segmented?
Which statement best describes the relationship between rapid premium growth and insurer risk?
In pricing a commutation, which item is not typically considered?
Which statement correctly describes a non-category investment gain in the IEE?
Allocation of charges from replication transactions and mandatorily convertible securities?
RAND's May 2005 comprehensive study of asbestos litigation observed that the annual number of claims began increasing sharply in which period?
RBC charge under the equity approach equals which expression?
How is Surplus Aid defined?
Which statement about Change in NWP and asset valuation should be considered when unstable?
Which is a consequence of a credit rating downgrade?
What happens to Schedule P if there is a change in the intercompany pooling percentage?
Which of the following is an example of different dates used in unpaid claim estimates?
In IFRS 4, under what circumstances can an insurer change its accounting principles?
What does the Notes disclose about intercompany pools?
In VBIF, unearned premium reserves are subtracted from which value?
Which term describes the settlement between insurer and reinsurer to discharge all remaining (present and future) obligations?
Rule to determine non-admitted EBUB?
Under a High Deductible policy, who bears the deductible portion of the loss?
Between 101 and 400 issuers, weight is?
Which of the following is NOT one of the four key areas the model guide reviews?
Which entity is responsible for monitoring the insurance industry and making recommendations on improving insurance regulation?
Preferred stocks are valued similarly to bonds, i.e. NAIC 1-6. Which statement best describes this treatment?
Which option is NOT a requirement to receive run-off accounting treatment?
Which of the following is NOT typically a focus of Market Regulation?
Which statement best describes when regulatory attention is greatest?
What does Ratio 5 measure?
Which Schedule F category corresponds to tracking the aging of ceded reinsurance?
An increase in the provision for reinsurance is typically reported where, and what does it suggest?
Which set correctly lists the four functional areas that must be addressed by an insurer's governance structure?
Policyholders of a liquidated insurer usually have which option after liquidation?
Which condition about unsecured recoverables triggers disclosure?
Which statement correctly describes the materiality relationship between tasks and practices?
Which of the following actions is NOT described as taken by many defendants instead of waiting for reforms?
Which of the following is a unique feature of US insurance regulation?
Which debt-related concern is noted regarding Katrina and NFIP?
In AMTI, what percentage is applied to income that escapes taxation?
Following the McCarran-Ferguson Act, what were the two model rate regulation bills designed to accomplish?
What is the common metric to compare companies' investment performance?
Surplus lines laws require which of the following?
Which is a function of Schedule F besides assessing net reserves?
Which statement about advance premium is accurate?
Which of the following is a use of the IEE?
How are unrealized capital gains treated in the balance sheet and income statement?
Where are retroactive reinsurance losses recorded?
What does Medical Set-Aside Allocation (MSA) require?
The covariance adjustment formula used in RBC is which of the following?
What is Market Regulation best defined as?
Which describes retroactive reinsurance?
If management has a range of estimates with no single point more likely, reserves should be booked at which value?
What are the two components of Loss Adjustment Expense (LAE)?
Which statement about the public exam report is true?
What is the formula for the estimated current reserve deficiency to PHS?
Under deposit accounting for the ceding company, if total losses are valued upwards, which of the following occurs?
IFRS measurement for Held to Maturity assets?
Which statement best describes regulators' consideration of investable assets for balance sheet strength?
Describe the structure of crop insurance.
Which of the following is NOT one of the eight sections in Reinsurance notes?
In intercompany pooling, what do notes disclose?
For long duration contracts, what is the required disclosure UEPR?
Non-admitted placement: Which state regulates placement?
The face value of a bond is defined as:
Which Part of Schedule P covers historical earned premium?
Schedule F includes what kind of information?
Which is a component of risk-focused surveillance by regulators?
How is Dividends to Stockholders derived?
Define a commutation.
What is the equation for Change in PHS?
In AL, LA, NC, which perils are covered under Beach and Windstorm Plans?
Which of the following is a recognized bond category in the framework?
Which statement best reflects why high investment yields may be misleading?
In the U&IE structure, each category of expenses is broken into which three parts?
What is TRIA's aggregate thresholds activation?
In liquidation, do owners of preferred stocks have priority to receive their investment before common stockholders?
How long must the actuarial report and underlying work papers supporting the SAO be maintained at the company?
What is the RBC factor for receivables for securities?
What happens to earned but uncollected premium if it is later found to be uncollectible?
Accounting treatment of structured settlements in which the claimant is the owner and payee?
Minimum required basic surplus is the amount of surplus existing insurers must hold to
Are Beach and Windstorm Plans eligible only in designated coastal areas?
In funds attributable to insurance transactions for each line, the bracket [1 - (prepaid expenses / written premium)] represents what?
What is a stated purpose of the financial interrogatories?
Which statement correctly lists the two requirements to qualify a contract as a Long Term Contract?
Which Schedule of A.S. describes detail about cash and cash equivalents?
The implied pattern for cash flows from nominal reserves is based on which ratio?
Which of the following is a priority item under SMI?
Which statement best contrasts the defined limits approach with the defined standards approach?
Under GAAP, an insurer may change its accounting principles under which condition?
Which statement best describes the market impact of RRGs for groups with limited access to insurance?
In the context of SAP and GAAP, which basis is used for surplus measurement?
Transfers from surplus to capital when stock dividends issued are described as what?
Why should reinsurer expenses be excluded from the risk transfer analysis?
Which of the following is an advantage of closing claims early?
Which of the following is a required disclosure when deriving unpaid claim estimate?
Illustrative wordings for a qualified opinion include which form?
How is the 2-year investment income ratio defined?
What is the initial primary purpose of rate regulation?
Which of the following describes the third stage of the US regulatory process?
Non-tabular discounts are typically applied to which type of reserves, as per the notes?
Which statement about JUA rate setting is true?
What inconsistency should users be aware of when comparing Part 5 data across different companies?
Valuation for properties held for the production of income is:
In retroactive reinsurance, losses are excluded from the existing reserves.
Briefly describe 2 schools of thought about insurance compacts.
Define perpetual preferred stock.
Type 1 events provide additional evidence with respect to conditions that existed at what time?
What does the Cash Flow Statement show?
In commutation accounting, the ceding company eliminates which item?
Why is amortization or accretion of bonds required?
Which statement about credit-based insurance scores is true?
Limitations of measurement tools
Which item is NOT among the Board of Directors interrogatory topics?
Which feature is NOT listed as part of finite reinsurance?
Under GLB, which statement about underwriting activities is accurate?
How many standards of Financial Regulation are listed as requiring accreditation?
Define 'long duration contracts'.
Which liabilities in Part 8 of Schedule F require adjustments to nonzero values?
What does WP RBC reflect?
Which statement is NOT a common characteristic of Surplus Lines insurance?
Which factors can be used to derive projected loss payment patterns?
Another reason private companies may need to understand IFRS accounting, even if they do not follow it, is to conduct transactions with an international company.
Which statement best captures the factors to look into if Change in NWP ratio is unstable?
In Other Surplus Changes, which item represents a decrease when recognizing nonadmitted assets?
Which statement defines surplus on the balance sheet?
In the actuarial functional area, what is the responsibility related to underwriting and reinsurance?
Which line of business should long-tail lines maintain for Ratio targets?
Which item is included in Part 6 of Schedule D?
Which item is a part of background material?
Which option is NOT listed as a reason flood insurance is considered uninsurable in the private market?
Which instrument would regulators seek through a court order to intervene in an insurer's affairs?
By which date must the RBC report typically be filed?
Which Part of Schedule P documents historical net paid losses and development?
If there are no random loss fluctuations, what is the equation for cumulative percent losses paid at each valuation date?
In accounting for disputed balances with an affiliate, which statement is correct?
What are the two possible outcomes from receivership?
What is the correct order for determining the due date of reinsurance recoverables?
Which statement summarizes the general critique of crop insurance performance?
Can the insured tell if they are in the scarced (assigned risk) market?
Which of the following was identified as a principal cause of the product liability crisis?
Which actions must the actuary take if constraints apply to the analysis which may potentially materially impact the results?
Under a structured settlement, which statement best describes the accounting treatment?
Premiums overdue over 90 days to be admitted: which condition applies?
Why are numbers averaged in the calculation?
Accounting treatment of structured settlements in which the insurer is the owner and payee?
Which explains why rating agencies do not respond as quickly as bond and stock markets?
Which statement is true regarding the treatment of the deferred tax asset in deriving capital subject to the cost of holding capital?
Which statement best reflects why measurement tools are useful?
What happens to surplus gain in retroactive reinsurance accounting?
Which statement about the two NAIC model rate regulation bills is true?
Average growth rate factor formula?
Which of the following is a priority item for SMI?
What is the maximum amount of losses the government will cover under TRIA?
Which statement best describes unrealized capital gains in relation to surplus?
What does the R0 charge include?
Which is a transaction that requires regulatory approval?
Interrogatory 4 topics cover disclosure about whether the reserves are net of non-tabular discounts.
Which changes should be considered when using Parts 2-4 to develop losses?
Under GAAP, the measurement focus is on earnings emergence; under SAP, the measurement focus is on what?
How are Guaranty Funds operated?
Which statement reflects a reason parameter risk might not be explicitly included?
Which of the following risks is excluded from the RBC formula?
What is the provision formula for an unauthorized reinsurer?
What is the most common reason regulators intervene in insurer operations?
Which statement best captures the potential redistributive effect described when credit-based scores are not used?
ERISA stands for which federal act?
What is a purpose of the Securities Act of 1934?
Which expression correctly describes the right-hand side of the formula for Part 3's Prior Years Row (2nd rightmost column plus something)?
In Part 7, which section addresses incurred loss & DCC on loss sensitive contracts, in the same format as Part 2?
When determining the age of reinsurance recoverables, if no dates are mentioned or if the recoverable is under 50,000, how should the amount be recorded?
What is the board's role in investments according to the interrogatories?
Which data element is reconciled against Schedule P?
Which statement is not a stated requirement for retroactive reinsurance to qualify as transferring risk?
Which NAIC principle specifically promotes collaboration with international regulators?
Which item most clearly serves as a catch-all indicator of hazardous condition?
Which act is listed as regulating the insurance industry and pertains to employee benefit plans?
What does the internal audit functional area require the insurer to do?
What percentage of insured losses does the government cover after thresholds under TRIA?
Which of the following is NOT one of the three federal workers' compensation programs listed?
Range of the average growth rate factor?
Which option is a factor specifically mentioned for determining the appropriate reserve method?
Which officials must certify a single terrorist act for TRIA eligibility?
Under P-GAAP, when the implied capital exceeds the purchase price, how is the difference treated?
Which item is a Loss Reserve item listed under the Loss Reserve section?
How does Statutory accounting double count the deduction for pre-paid acquisition costs?
How does one apply to the FAIR plan?
If aggregate industry losses exceed $27.5B, what discretion does the Treasury have?
Which of the following is included in the list of financial risk factors?
Which item is listed as a concern created by GLB?
In the accounting treatment of commutations, the reinsurer eliminates which item?
Which statement best describes the relationship between principles and rules?
Which columns from Part 1 prior row are added to form Part 4's prior year?
Under the IASB’s approach, which scenario is excluded from the 'significant insurance risk' assessment due to lacking commercial substance?
Under TRIA, which threshold defines Medium losses?
Which source is used to determine reinsurance collectability?
Which statement about the court's view on insurance contracts in Paul v. Virginia is accurate?
If a premium is not known, what is a recommended approach to modeling risk transfer?
Provision for Authorized Slow Paying reinsurer is:
Following the Flood Insurance Reform Act of 2012, which issue remains for future congressional consideration?
Which of the following is NOT a reason insurers may enter into portfolio reinsurance arrangements?
What is defined as an Actuarial Report?
Which arrangement describes government as a partner with a private insurer?
Which is listed as a not-eligible condition due to upkeep?
Which statement describes the degree of rate regulation and rationale for Surety?
What is the expected impact on the ultimate loss projection if a slowdown in settlement rates is not reflected?
Which actuarial implication is associated with the period before the MSA reporting deadline?
Which statement best describes anti-rebating laws?
Which statement describes the rationale for conservatism in the 10% reinsurance recoverables charge?
Which statement about the impact of pools on data is true?
Which item is evaluated during onsite exams?
In a JUA, how are pool results allocated among servicing insurers?
Which statement best describes the Capital & Surplus exhibit?
What is the RBC factor for derivatives?
Which of the following is listed as a reason for a large decrease in premium (Ratio 3)?
R0 charge for preferred stock investments in Insurance Subsidiaries is calculated as which expression?
Which statement correctly reflects the ERD-based risk transfer criterion?
Which of the following is NOT a reason some model laws are changed or never adopted by states?
Which two groups are identified as adversely impacted by the use of credit scores in insurance, as a combined pair?
Which statement best describes an Exclusive insurer?
Reinsurance payable on losses & LAE refers to which of the following?
After purchasing common stocks, the balance is recorded at:
Which of the following is an example of an item that should be disclosed in the actuarial report?
For asbestos/environmental disclosures, which line items are required for the 5 most current calendar years on a gross and net basis for each exposure?
If an error is discovered in the data that would have materially impacted the opinion between submission and the balance sheet date, within how many days must the insurer forward the amended opinion to the insurance commissioner?
Which filing type requires prior approval by the DOI before use?
Why are the regulatory requirements for captives less restrictive than for RRGs?
What are the three stages of Financial Regulation?
Which condition would suggest that reinsurance protection is insufficient?
After the McCarran-Ferguson Act, what action did the NAIC take regarding rate regulation?
Explain the impact of the fact that in crop insurance, the losses have not been shared proportionately between the government and private market.
Which of the following is NOT a component of Other Income?
Which item reflects GLB's regulatory concern regarding a global financial services market?
What is the RBC ratio range used in the trend test criteria?
Which of the following factors would require higher risk margins?
Which data element is reconciled against Schedule P?
For Type 2 events, what disclosures are required?
Reserves:premium from prior year is defined as which expression?
In calculating Total investable assets, which item is subtracted?
Which statement best describes the difference between IASB and GAAP regarding significant insurance risk?
Which statement describes the non admitted portion of Real Estate?
In GAAP, retroactive reinsurance treatment is described by which statement?
Replication (Synthetic Asset) transactions are:
What is cited as a consequence of bankruptcies for workers in firms with asbestos liabilities?
Which is an advantage of Fair Value?
List the 3 parts of the IEE.
What happens if the insurer refuses an interactive meeting?
Which action is known to distort reserves in Schedule P data?
Which statement describes the rate regulation for Workers Compensation?
Which factor makes it easier for the government to quickly establish an insurance program?
Under the subcommittee recommendations, which constitutional basis was urged to enable states to regulate insurance?
Which situation allows FIO to preempt state law?
What is a potential impact on product design due to IFRS unbundling requirements?
Which statement is a similarity between RRGs/Captive Insurers and Mutual Fund Companies?
What is the equation and normal range for NWP:PHS?
In Part 7, which section covers loss & DCC IBNR on loss sensitive contracts, in the same format as Part 4?
Which of the following best describes the CWP ratio?
Valuation rule for properties occupied by the company (>50%) is:
Under Dodd-Frank, which insurers fall under the Federal Reserve Board's regulation as 'systematically significant'?
Under deposit accounting for the ceding company, when does a deposit become an admitted asset?
Cap on three-year average growth rate used in excessive growth threshold?
What percentage of the unsecured Accrued Retrospective Premium is non admitted?
Which is a listed reason for a large increase in premium (Ratio 3)?
Restatement of Balance Sheet is which part number of Schedule F?
Which statement is true about reinsurance recoverable on loss payments?
Under Pillar 1, which two main quantitative capital requirements are defined?
Which of the following investment types is listed as generating an R0 charge when invested in an insurance subsidiary?
Which party would take a going-concern view of the insurer?
Earned premium under statutory accounting equals WP minus Change in UEPR. Which equation expresses EP under statutory accounting?
Which area has major legislation been created due to consumer complaints?
According to empirical data, what is the relationship between credit scores and claims?
Change in NWP normal range.
Which statement correctly describes the accounting treatment of retroactive reinsurance?
Which sentence illustrates an example of different dates used in the unpaid claim estimate?
Regulation S-K requires which of the following items?
Which statement best captures the role of underwriting in preventing catastrophic losses in an insured risk?
What characterizes the trust fund approach?
Define intercompany pooling.
Under the stated basis of reserve presentation, which item addresses the treatment of recoverables?
Which category is included in Schedule P Part 1 but not in Schedule P Part 3?
How are recoverables from reinsurers recognized relative to loss reserves?
What is the correct equation for the cost of double taxation (after tax)?
What is the US Insurance Regulatory Mission?
From Part 1, reserves used in the calculation are derived by which expression?
Which area is explicitly listed as a key area in the four-key areas model for examiners to review?
Which statement best describes the disclosure of MAD risk factors in the illustrative wording?
List some factors that can be used to allocated expenses.
The company development factor by line uses data from how many prior accident years (AYs)?
Define an Insurance 'cooperative'.
Non-tabular discounts are often applied to which type of reserves?
Which statement is a commonly cited critique of crop insurance programs?
Which of the following is NOT a licensing requirement for producers?
Which action is required in the preemption process regarding communication?
Which are the two categories of subsequent events?
What is the normal range for the Surplus Aid:PHS ratio?
Under prospective reinsurance accounting, what happens to amounts paid for reinsurance?
Which of the following is NOT a level of government participation in insurance?
How is the 2-year expense ratio defined?
Which of the following is listed as a difference between preferred and common stocks?
Which statement about data sharing and ratings is true?
Not a criterion for exempt commercial purchaser?
Which action would regulators take to address governance practice deficiencies?
Which licensing component relates to ongoing professional standards?
Which of the following is NOT listed as a concern of nonseriously injured unimpaired claimants?
What is the RBC factor for Admitted collateral loans?
Which option should be included for intercompany pooling SAO elements?
If an error is found after submission that would have materially impacted the opinion, which combined steps are required?
Which action has FEMA taken to address Repetitive Loss Program (RLP)?
Which of the following is an exception to the significant loss criteria?
Before an exposure audit, what statement about EBUB is true?
Which LAE category cannot be allocated to individual claims?
What is the formula for average case outstanding severity?
Which of the following is a federal government regulation affecting the insurance industry?
Which asset category uses a different RBC factor of 0.01?
Which item is included in the asbestos/environmental exposure notes?
Which statement defines a pure captive?
Parts of the SAO include which of the following components?
Which statement best describes IFRS treatment of unearned premium reserves and deferred acquisition costs?
Define run-off agreement.
How is the Company RBC% derived?
Net investment income earned is reported on which basis?
How do GAAP and SAP treat DAC?
Which of the following is a reason why Financial Strength Ratings are important to insurers?
Above 400 issuers, weight is?
Schedule BA describes which category of assets?
In a SSAP 62 risk transfer analysis, what discount-rate property should hold across simulated iterations?
Which of the following is an external governance control?
Which statements describe the two purposes of rate regulation?
Which Schedule of A.S. describes detail about the short term investments?
Which statement about LAE is true?
Which of the following represents the components used to compute Total investable assets?
Where can a user of financial statements find evidence of deteriorating loss ratios?
Define financial risk.
Form 8-K is filed to disclose which of the following?
Which statement best captures the essence of the political theory of regulation?
Retrocession is defined as which of the following?
For Title insurance, which statement is identified as a control mechanism in the rating approach?
In the indirect revenue offset equation, what percentage is multiplied by change in UEPR?
What is the normal range for Change in Adjusted PHS?
Which statement best describes the inactive dockets reform?
ARIT equation: which expression defines ARIT?
The 'financial hardship' exemption is triggered when the projected cost of the actuarial opinion would exceed the lesser of which two values?
When determining materiality, which two things are necessary to study?
Excessive premium growth charge formula?
In corporate structure, the 'parent' is defined as which of the following?
Describe the market effect of RRGs?
What disclosures are required for high deductible policies?
After purchase, how are changes in fair value of common stocks recorded?
Which of the following represents a concern due to riskier or unprofitable lines within the written premium section?
Captive insurer regulatory requirements are typically
Which statement describes a service provided by Insurance Advisory Organizations?
RBC charge for Mandatory Convertible Securities equals:
Which of the following is a core part of the SAO structure?
Which concept best describes how courts impact insurance regulation by focusing on the contents of policy language?
Define commutation.
Which item provides insight into exposure by line of business?
Which of the following steps are used to determine reinsurance collectability?
Which item is one of the eight sections listed in Reinsurance notes?
Items regarding the unpaid claim estimate that need to be identified by the actuary include which of the following?
In AM Best ratings, which designation corresponds to Under supervision?
What is the normal range for the ratio of estimated deficiency to PHS?
In a Joint Underwriting Association (JUA), which statement best describes the servicing insurer's role?
In novations, the amount received by the assuming insurer is recorded as which type of premium?
What is the normal range for 1yr Reserve Development to PHS?
Which federal regulation area is listed as affecting the insurance industry?
The cap on the company development factor by line is 400%. Which statement is true about this cap?
Which statement best describes contingent commission?
Which of the following is a use of financial reports for stakeholders?
In asbestos/environmental disclosures, the item 'amount paid & reserved for loss & LAE' refers to amounts paid and reserved for which?
In risk transfer analysis, what does the term risk transfer primarily assess?
What categories are expenses divided into in Part 1 of the IEE?
When there are large receivables from parent, subsidiary, or affiliated companies, which statement about liquidity is most accurate?
Which is a frequent contributor to insurer insolvency?
Are the consequences of flood risk and the level of protection offered by hurricane protection systems effectively communicated to the public?
What contributes to state funds being self-supporting?
Which of the following is an example of items that should be disclosed in the actuarial report?
What is the main purpose of Schedule F?
Regulators are interested in motives behind portfolio reinsurance because regulators may be concerned about fronting for unlicensed reinsurers. Which option best reflects this concern?
Which of the following describes Method 1 for handling nonadmitted assets?
To assess catastrophe exposure by jurisdiction, which source is most relevant?
Which item is included in the financial interrogatories?
Which renewal-related statement is true based on the material?
One reason private companies may need to understand IFRS accounting, even if they do not follow it, is to raise capital in a foreign market.
What are the two components of insurance risk?
Which of the following is an example of a factor that can cause material adverse deviation?
Which of the following statements correctly identifies a component of Other Surplus Changes?
Not-signed release: which statement is true about SAP and GAAP treatment?
Which topics are described in the Summary of Significant Accounting Policies note?
Which expression gives the needed margin as a percentage of capital?
Which is a reason LOCs are expensive to the reinsurer?
How do property insurers share in Beach and Windstorm Plan losses?
Which statement best captures one of the goals of assessing insurer financial condition?
When is interest paid for accrued interest on dividends required?
Which of the following is a requirement of the actuarial functional area?
Under the McCarran-Ferguson Act, the Sherman Act continues to apply to which activity?
How is earned but uncollected premium generally accounted for in premium accounting?
Which concern is raised by shifting liability to guaranty funds?
Own Risk & Solvency Assessment (ORSA) is best described as?
How many classes of people are adversely impacted by the use of credit scores in insurance, according to the material?
The revised AOS should be submitted to the regulator within how many business days?
Which item is 'Reserve for unpaid losses - direct & assumed'?
What are the accounting principles prescribed by state regulators called?
Which of the following is NOT listed as a concern with replacing the formula-based method with internal models?
In the preparation of the balance sheet, the actuary’s role is to?
Define Syndicated Letter of Credit.
Which of the following is a limitation on Guaranty Fund coverage?
Which statement best describes why federal agencies affect the insurance industry?
How many total ways does the government participate in state WC programs?
What are the investment gain categories in the IEE?
Which statement best describes VaR in the context of risk margins?
What does the term 'disproportionate impact' refer to in the context of credit scoring use?
When should reserves for losses under high deductible policies be established?
The letter from the former actuary, regarding disagreements, should be forwarded to the Commissioner together with what?
What is the main reason credit scores are considered reliable for segmenting risks?
Exempt commercial purchaser criterion: Net worth >= $20 million.
Under TRIA, which threshold defines No coverage?
Which method assumes that premiums are written evenly through each month?
How is the ratio of reserves:premium defined in the model?
Which statements about reinsurance should the actuary make?
Captive insurers are generally believed to have
Under NRRA, which of the following is a valid condition for credit for reinsurance?
Which of the following is NOT listed as a problem with regulation?
Which party would take a liquidation view of the insurer?
Which level requires immediate attention and financial analysis?
What accounting action is required of an insurer if it provides tail coverage at no additional charge?
Which statement provides the most complete description of the use of both qualitative and quantitative disclosures in the notes?
An increase in underwriting or other expense ratio may suggest which of the following?
Which statement about Pillar 3 is true?
Why is the discount rate vintaged?
Who reinsures the losses in crop insurance?
Which statement about refunds under guaranty funds is true?
On a commutation, the cash received by the ceding company is treated as which of the following with respect to paid losses?
From the general interrogatories, which observation would most likely indicate a lack of internal discipline?
Under deposit accounting for the ceding company, what happens to the amount paid?
Provision for Authorized Non Slow Paying reinsurer is:
Which of the following statements was among the legal challenges insurers used to oppose Florida's 2003 limits on credit-based scores for PPA and HO?
Which reason is cited as justification for premium subsidies in flood risk policy?
Six parts in Schedule D. Which entry corresponds to Part 1?
Which of the following is an example of NAIC staff support to state regulatory officials?
Regulation S-K requires a 10-year loss reserve development table rearranging Schedule P data to be which arrangement?
Which part covers bonds and stocks acquired during the year and still owned as of 12/31?
Which statement about FAWG is true?
Which statement best describes off-site solvency monitoring?
Which statement is a reason most insurers are rated?
Which item is included as a basis for tabular discounts in the discounting notes?
Under SAP, loss reserve discounting is rarely allowed except for which line of business?
What is the Excessive premium growth charge formula for NWP?
Which statement describes the Cost of capital method as a risk margin approach?
If a subsequent event provides evidence that did not exist at the balance sheet date but arose after, which Type is it?
What is the aggregate industry certified losses threshold for government coverage to begin under TRIA?
Under novations, which action is taken with novated balances?
A receiver is best described as a
Tail coverage for claims-made policies is defined as:
What should actuary comment on if mass tort exposure exists?
Are rates in the Reinsurance Facility uniform?
What is the purpose of including loans to related parties in financial interrogatories?
Which item is included in the AOS?
Which item is listed in the Loss Reserve section of Exhibit A: SCOPE?

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