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As per Gresham's reply (above), you will not need to submit diagrams in the exam. You may want to sketch a few to help with MCQs, but you can do...

Hi again, That was why I said "an appropriately stringent" claims management procedure (rather than an "equally stringent" claims management...

Hi Eleanor, Yes, I think that your interpretation is definitely part of what the Core Reading is saying. I wonder if it may also be a bit...

Hi, Mock Exams with marking are definitely a good option - thanks nyaman. Another tutor will also contact you to check in and consider further...

Hi, ActEd doesn't use many acronyms for Subject SP1, and there's no list like there is for CP1. The acronyms we do have are in the Revision...

Hi George, For part (ii), you need to calculate the level of disequilibrium unemployment (ie the difference between the aggregate supply of...

Hi Rajat, So the first thing I would say is that this isn't a huge issue for SP1 - it's probably more of a question for one of the earlier...

Yes, the chain ladder method is generally used for short-term business. And that's correct for the lack of existence of an outstanding claims...

Hi, I suspect that the Examiner's Report is suggesting that care homes might inflate the cost of care, which would result in higher claim costs...

Hi nyaman, I think it's a bit more complicated than saying A-C goes in decreasing severity. Option A means that mortality for impaired lives is...

Hi, Good question! You're right that the solution also includes short-term reserves because of the group IP policies (which are sold as annually...

Hi Dane, Headings are a great idea. A useful one that I use a lot is the items in the P&L account: Premiums (can subdivide into NB volumes and...

Hi Trevor, I'm struggling a bit to see what you're saying in each case. "A" must be a rate, or it doesn't make sense to do a weighted average,...

Hi N93, I think you could use a multi-state approach to model transitions between states for tiered CI. I hope this helps. Anna

Hi kze, Yes, this is tricky. I find it always helps to draw a timeline for this sort of thing. I think you have misread when we assume lives...

Hi cw812, An immediate needs long-term care insurance (INLTCI) contract could be an immediate needs annuity (although other variations are also...

Hi Kze, Note also that the Core Reading says "This would reflect an insurer's preference for higher sums at risk ...", which doesn't say that...

Hi Dimitris, I think the key word in this is "relative". If retention increases, then the insurer will be ceding relatively more uncertain /...

Hi Patty, Yes, you're absolutely right, but this is a distinction between long-term and short-term reserving terminology. IP is a long-term...

Yes, that's right!

Hi dimitris13, I think it is talking about the standalone CI - just saying you'd get a little bit back if you died (rather than getting a CI)....

There would be, but that set of rates would apply to a different cohort of lives. For the policy that begins on 30 Jun 2020, for which the !...

Hi JamaicanJem, Let's imagine that premium reviews occur every 6 months - on 1 Jan and 1 Jul. Premiums are therefore reviewed on 1 Jan 2020....

Well if you also sell TA policies, then a policyholder who got a CI and then died could claim on both a TA and a SACI policy (so you'd pay out...

I think we are making the assumption that we already sell term assurance policies ...

Hi, Critical illness and terminal illness are not mutually exclusive. Many critical illnesses are terminal, and many terminal illnesses would...

The insurance company will choose what products it wants to offer to applicants - it might decide that insuring a pianist on an own occupation...

Hi, Consider the example of a professional pianist. Breaking a finger would render the pianist unable to play professionally, and so with an own...

Hi again, To really convince yourself of this, it's best to draw the diagrams. In Section 19.1 of the textbook, it gives a diagram of the...

Hi, Q24 - Fiscal policy is the use of government spending and taxation to affect the level of aggregate demand in the economy. For example, an...

Hi Michal, We sell ASET 2019, which covers both 2019 exams, so these exams are based on the current syllabus. We also sell ASET 2014-17, for...

Hi, The Course Notes are now more of a guide as to how to use the textbook, so unfortunately I think you'll have to get the new textbook. There...

Hi, Subject SP1 is largely the same as Subject ST1. There are a number of fairly minor changes to the Core Reading and ActEd materials, and...

1) Yes. 2) Without knowing which versions of what you are referring to, it's very hard to say. Revision notes are updated each year to reflect...

Claims terminate due to three possible events: recovery, death and reaching the expiry age (or term) under the policy. It is a very general...

I personally would write the whole thing out to be sure of scoring the full 2 marks :)

Hi, This isn't just true for a monopolist - this is true for any firm. Profit = TR - TC So a firm will make zero profits when TR = TC, ie where...

Firms will maximise profits where MR = MC, so this is the quantity they will typically choose to produce. Firms operating under monopolistic...

Profit = TR - TC We can find maxima/minima by differentiating profit with respect to output and setting this equal to zero (and if we...

Hi, The ST1 exam doesn't test this sort of thing terribly often, so it's hard to say exactly what their approach will be in certain situations....

Hi, There may be trends in under/over-reserving, for example, over time, reserve estimates may get more accurate, in which case there would be a...

Demand for a currency comes from the positive items in a country's balance of payment accounts. Supply of a currency comes from the negative...

Hi Teacher's Pet, There are a number of possibilities for different accounting funds. Here are a few examples: with-profits / without-profits...

When a single price is charged to all consumers, the demand curve is represented by the average revenue (AR) curve. The AR received by the firm...

The change in reserves are part of the financial account balance. The sum of the current account, capital account, financial account and net...

Hi, You're right that the items in the list are assumptions and so they have already been checked, however we're now checking that the outputs of...

Hi Jane, In the Student Handbook (which you can find on the IFoA website), there is a section on command verbs. Under "Suggest", it says:...

Hi black_bird, Yes, unfortunately that is the case for SA1. The number of students studying SA1 is so small that there is simply not demand for...

Perhaps you could be more specific about what you don't understand about the example in the notes? Anna

There is an explanation and example in the ActEd Course Notes - Module 8, pages 19-20. Enjoy! Anna :)

Hi, Perhaps you could be a bit more specific about what it is that you don't understand? Anna

Hi Chris, If I understand your post, it looks like you're assuming that development factors change at the same point in time that the claims...

Before posting threads, it is often worth looking at past threads. I think your first question has already been answered:...

I wouldn't advise it - the textbook is the recommended reading for the course, and in the past there have been questions that test certain...

Module 18 isn't one of the most heavily examined parts of the course, but questions on it do come up. I assume you're expecting a reply from...

Hi, We would always recommend using the correct version of the textbook, which is the 6th edition. The details of the textbook are as...

Yes, that's what it's trying to say. And it won't depend on the elasticity of supply. Try drawing the diagram with supply curves of different...

The money-interest link is weak if demand for money is interest ELASTIC (not inelastic). Try drawing a money market diagram with an elastic...

Profits made by companies ultimately belong to shareholders, but if profits are retained by companies, rather than being paid as dividends, then...

It's very difficult to know how/what to explain as I don't have a feel for the level of your understanding. Perhaps you could list exactly...

Perhaps you could be more specific about which factors are confusing you? :)

An after the event claim denial is where the policyholder has already had treatment, but the insurer refuses to pay. Managing care provision...

Hi, There was a period of about five years where there was (at least!) one calculation question on all but one of the exams. More recently...

I wouldn't recommend using the fifth edition. I would use the textbook I described in my post above.

It looks like you're using the wrong textbook. This one seems to fit your description, but unfortunately, it's not the right one :(...

I don't think you're using the right textbook. Chapter 21, Section 2 of the textbook is entitled "Policies towards research and development",...

In the diagrams, only AC1 is tangential to the AR curve. This illustrates the initial position. The short-run position is illustrated by the...

The references in the 2014 version of the ActEd notes should be to the sixth edition of the textbook. Are you using the 2014 notes? If so,...

In both parts (i) and (ii), the diagram in the solution is the short-run position. The long-run position is just the standard long-run...

Yes, it's just single and regular premiums. The flashcards aim to summarise and test the main bits of Core Reading and this Core Reading is at...

Hi Schuey, I don't see why a regular premium version can't exist. And yes, I think your understanding is fine :) Anna

Hi misterh, I think I can safely say that we've all been here! Some of the questions may seem subjective, and indeed, the marking schedules...

NPV is a general term used to describe the method of valuing a series of cashflows. We might be discounting cashflows for a capital project, or...

I think that some students are able to pass the exam just using the Course Notes and the Revision Booklets - particularly those who have studied...

As the Core Reading for CT7 is primarily the textbook, this section does not exist in the CT7 Revision Booklets. All the other sections are...

Marginal utility is the satisfaction derived from consuming an additional unit of a good. If you derive more satisfaction from buying £1 of...

(Q2-Q1)/Q1 is how you calculate a percentage change in quantity demanded. If the quantity has risen, then Q2-Q1 will be positive, so the...

The Revision Booklets cover all relevant past exam questions from the last 10 years, ie 2003 to 2012 inclusive. Since Subject CA1 only started in...

Even though breadth is important in Subject CA1, you still need to write enough detail to adequately justify and illustrate your points....

Everything that is in Core Reading font is indeed Core Reading, so yes :)

It is certainly the case with the UK exams that you don't need to write an explanation for the multiple-choice questions.

It's a completely separate qualification - a bit like the AAT accountancy qualification. Don't worry - I don't think there will be many people...

We have been given: Y = 200 C = 15 + 0.75Y So C = 15 + 0.75 x 200 = 165 and the answer is Option B. We can generally write C as: C =...

In the first case, you have said that the government wants to control the money supply by selling securities. So the government sells bonds to...

The definition of producer surplus (from Module 12) is: Producer surplus is the surplus revenue received over that which is necessary to...

There's no rule saying what the revision booklets should contain, but I think it would be unfair on students for them to contain a lot of points...

Yes, I would agree with your statements :)

Hi AndyPhil, Unfortunately, I'm afraid that I rather share your frustration with this particular question. I think there are a number of ideas...

Yes, sorry - this is an error - it should refer to survival too. I have updated the corrections document that is available under the "Help and...

There is overlap between some of the products that we sell, and we wouldn't necessarily recommend that you buy everything. We try to provide a...

Your third point might have got some credit.

This question is mainly just bookwork from Chapter 13 (the start of Section 3.1). It's a lot more general than looking at the risks associated...

1. A cash benefit is more flexible as the policyholder can choose what to do with it. In the case of an indemnity product, the benefits would be...

According to the textbook, the balance of trade is defined as total net exports of goods and services, so the answer to this question is a deficit...

The standard link is that a rise in interest rates will lead to a fall in consumption and a fall in investment. This is because: - saving is...

These topics were removed from the syllabus when the course changed in 2010. Have a look at the CT7 FAQ (Frequently Asked Questions) thread at...

Balance of trade should include both goods and services. In the exam question you are referring to, the examiners accepted both interpretations...

If you bought the textbook from ActEd, email ActEd on acted@bpp.co.uk.

Well we've seen by September 2010 Q13 that they might require you to know some of these! Even though these terms aren't defined in the course,...