I noticed that this part of the chapter (investigations for AWP cotracts) is all non-core reading. Is it safe to assume that we wouldn't be expected to explain these approaches in detail?
The part that does have core reading (section 5.5) says:
- "Discounted CF methods would be used instead of gross premium valuations where there are fixed charges." I'm not sure what this means? Also, isn't a gross premium valuation a discounted cashflows method anyway?
- It then goes on to say "...projections of earned asset shares may be more commonly used." This feels contradictory to the previous statement.
I'm not sure what I'm missing?
Last edited by a moderator: Sep 9, 2017