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

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