J
James789
Member
I am looking over the examiners' report for September 2018 Paper 2.
It looks like there is an error in the updated calcs. Specifically, the way the new fund charge has been set up on the Parameters worksheet means that there is no exit charge for policies maturing within 5 years, rather than within 4 years, as was asked in the question. This can be seen on the 'Product Projection Capped Chg' worksheet - e.g. there is no exit charge levied for 5 year policies exited in the first year. This error then propagates through to all the other results, throwing off the updated profitability and the new fund charge calculated using goal seek. Kind of annoying.
It looks like there is an error in the updated calcs. Specifically, the way the new fund charge has been set up on the Parameters worksheet means that there is no exit charge for policies maturing within 5 years, rather than within 4 years, as was asked in the question. This can be seen on the 'Product Projection Capped Chg' worksheet - e.g. there is no exit charge levied for 5 year policies exited in the first year. This error then propagates through to all the other results, throwing off the updated profitability and the new fund charge calculated using goal seek. Kind of annoying.