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Hi, there is a question on reverse mortgage insurance in the IAI past papers but I am not able to find anything on it in the core reading. Could...
Hi, I have read it somewhere,for a participating deferred annuity: "Given the participating nature of the contract during deferment period, any...
This is a question from IAI paper. Thanks for explaining!
IAI Sept 2016 Q1 (ii) ii) Describe the key risk factors that would affect the change in net asset value over a one year period; and how would the...
Hi, Anyone interested to connect for SA2 study for IAI November 2023?
Thanks Colin, appreciate it!
Hi, I am working in Life insurance for the past 4 years and specialised in SP2. I am considering SA7 as my fellowship exam but I haven't studied...
Anyone appearing from IAI?
IAI is Institute of Actuaries of India
Hi, anyone interested in studying together for SA2 from IAI May 2023 attempt. Please DM. Thanks!
Hi all, Could anyone please guide on which chapters to study from the SA2 core reading for appearing from IAI? If anyone interested for group...
Thanks Alvin!
Hi all, Is there anyone appearing for CM2 for December 2022 exam diet of IAI want to connect for group study? Please feel free to DM(Only IAI...
There is a table in this section showing the effects of changing in the value of an American put option due to increase in the given five factors....
Thanks for explaining Alvin. I got your point. But I am just thinking is there any possibility where we can give a simple answer by just looking...
An investor wishes to allocate her capital between a service company S and a manufacturing company M. The returns on shares in S have mean 10% and...
What I would do in this situation is to start studying CP1 immediately. I would start with those chapters which are overlapping between CP1 and...
IFoA, April 2020 - Chi Square test Method 1 Paper A - They have used a chi-square test to validate the random numbers fall into uniform...
Yup, I will do. Thanks Sarah.
Hi, I have a doubt in Sep21 paper of IAI. Here, we are given a data of policies - Start date, annual premium, term, current value etc. While...
That's really helpful. Thanks
Hi, when the contribution of a DC scheme is age related what does it actually mean? Higher contribution at higher age? How it differs from flat...
Thanks..this is helpful.
Also, I did purchase the material in 2021 and I am appearing for March 2022. I am not able to find the revised X assignment in CMP upgrade and...
Thanks for explaining. Just one follow up question on this. In the first point i.e. minimum benefit.. the company makes sure that early retirees...
Hi, I have seen two questions which seem similar to me but their solutions are quite different. Ch6 - Q6.7 talks about factors to be taken into...
In X series 1, qus 1.4 (ii) asks about the restrictions on early retirement benefits. A part of the solution is: Minimum benefit relative to the...
Hi, In Paper B of Sept 2020 IFoA there is a something I am confused about. In the solution, a goal seek is used to calculate the revised policy...
While reading Q13.2 and Q13.3 it seems like both are asking the same thing i.e. investment considerations in a pension scheme, with Q13.3 more...
Similarly, there is one more question. Ch13 - Q13.1 The question talks about providing AVC under a final salary scheme i.e. DB scheme. But in the...
Yes, I had purchased the material last year which I am appearing for the upcoming diet. So, if such a question comes in exam and I outline the...
X3.3 (i) The question asks about the merits of the contribution rate being flat rate or age related. But in the solution, both merits and demerits...
Thanks a lot. That's really helpful!
On page9 of this chapter, there is a question: Explain why a scheme might invest the majority of its assets in equities? Ans. Equities may provide...
Hi all, I have few doubts in IAI March 2021 paper: 1. It is mentioned that if Ms. Bee chooses to buy annuity at retirement, she will get the...
Okay, so based on retention limit, the proportion of claim and premium is derived. Got it, thanks Mark.
Ch-24, summary: It is mentioned that all the below types of reinsurance contracts may be on quota share or individual surplus basis. Original...
Thanks Mark, that is really helpful!
Hi tutors, Could you please confirm do we have below concepts in current SP2 curriculum or they are removed? Related to calculating the cost of...
Yes, its clear now. Thanks @Lindsay Smitherman
Hi Mark, I also have a doubt in this chapter. On page 15, section 2.3 (Valuing a mortality option) It is mentioned that when a policyholder...
In chapter 21, under section 5.3 'Determining a basis for retrospective value', there is a question as below: Qus. The Core Reading suggests that...
Hi Mark, Thanks for this. I have one more question on the same topic, from chapter 21, page 9: The question asks to calculate surrender value...
I have read this in a past papers question that surrender value can be negative in prospective method. How? Also, can it be negative in...
Qus. 3 (iii) of this paper: An insurance company is considering offering a surrender value in the single premium payment term insurance products....
Hi Mark, Thanks for the confirmation.
Qus. 1 (i) Discuss the five key factors which would influence the amount of initial capital needed by the company to write a particular policy...
Hi Mark, Thanks for your response. I agree with your points. However, in second point, I am assuming systematic risk will happen only if most or...
IAI - Nov 2019 - Qus.6(ii) Discuss the advantages and disadvantages for the insurer in moving towards using active valuation approach instead of...
Thanks Mark!
Hi Mark, Thanks for the explanation, that makes sense. I just have one follow-up question : what is the difference in lapse and surrender in...
I understood this now, thanks.
Terminal bonuses: A percentage of total attaching reversionary bonus including any special reversionary bonus. A percentage of total claim...
Qus. 1 (iii) A proprietary life insurance company writing significant volumes of with profit business had recently undertaken an analysis of...
So, I suppose it is the non-unit reserve which is most relevant in unit-linked contracts as there is a risk that the fund value may not be...
One more doubt in this paper: Q.4) Country Zari has a well-developed equity market. During the financial year end there was huge market...
Q.3) i) Describe the impact of decrease in the level of prudence in the reserves on the embedded value of unit-linked contract. Ans. i) For unit...
Hi all, There is a question under section 1 of this chapter (Alterations) which says, Explain whether the mortality assumption used in...
Assuming there is no foreign sector, if the multiplier is 3, and the net income tax rate is 20%, the MPC is A. 3/4 B. 4/5 C. 5/6 D. 6/7 As...
Which of the following would not result in a rightward shift of the Production Possibility curve? A. An increase in investment in Capital Stock....
In a closed economy with no government sector, the marginal propensity to save is 0.1, investment is £500 million, and autonomous consumption is...
The goods can be produced by two countries with given resources are as follows: Wine Bread A 10 20 B 4 16...
24 Country A exports Good X and imports Good Y from Country B. The price of Good X rises by 20 per cent and the price of Good Y falls by 40 per...
Country A takes 20 hrs to produce one unit of good X and 5 hrs for good Y. Country B takes 30 hrs to produce one unit of good X and 15 hrs for...
Hi, Thanks for the explanation, make sense. But, if a question asks to define structural unemployment, what should we write? As I can see two...
Which of the following is best suited for reducing the level of structural unemployment? A. lowering the rate of interest B. raising the rate of...
Consumer A has higher income than consumer B but they have identical preferences and pay same prices for goods. It is mentioned that marginal...
Good X has a cross price elasticity of demand with respect to Good Y which is equal to minus unity (-1). Good X is which of the following? A....
Thanks Mark and Varsha!
Hi All, I didn't clearly understand why there will be lighter withdrawals and lighter mortality than expected if the company changes from paying...
Now it makes sense. Thanks Mark!
Hi Mark, I appreciate the quick response. If the part(I) has nothing to do with product b and c, then it is fine with premium changing part. But...
Hi All, In qus. 4.4, part (I) asks the risks avoided by the investor in opting for product a. So, I am assuming we need to compare it with...
Hi Mark, As per the first para above, risk free rate is used in market consistent approach and so it will not be a best estimate. But we add a...
Hi All, On pg3 of ch20, there are different approaches of reserving basis. 1. First is calculating premiums on prudent basis and the same basis...
Hi Mark, That was really helpful. Thank you!
Okay. Thank you so much Sanchit :)
Hi All, There is a question on pg4 of ch5, which discusses that the cost of cover lie between 0 and SA. I didn't understand much the wording of...
Hi Sachit, Thanks for your revert. I had doubt regarding why we have accumulated 97.09 using 6% in future profit and discounted 100 using 3% for...
Hi everyone, Hope you are all safe and happy! I am struggling with ch18 of SP2. Could anyone please explain the example given on pg7 of this...
Page 3, Qus (a) - If the expected cost for policyholder is higher for without profit contracts than a unit-linked contract, does it mean that the...
Hi David, Thanks for the clarification. I think I overestimated the knowledge of actuarial freshers..;)
In chapter 2, question under section 1.1 :- For a group of recently recruited actuarial students, it is given that they will have some basic level...
Does it mean that we can pass overall just by getting full marks in the written paper but a very low mark in the practical paper? Let's say the...
Hello Could anyone please provide me the list of chapters name in CM1? If anyone having the core reading, please send the index page of it where...
Thank You
Hello everyone! Can you provide me a list of Excel Functions to be used in CM1B Exam? I don't have the material yet. If anyone have it or know...
Please anyone help me with this qus asap. I am having the exam tomorrow. My doubt is why the additional 1m of investment is not considered in NPV...
Yes, it is Sept 2015, Q3 (IFoA). About depreciation, we can say that it is not a cash outflow but it decreases the annual profits. The qus says...
Any tips for CT2 (IAI) exam? Thank you!
Anyone please asap.
Suppose a company take a loan to invest in a project where the project involves purchasing of a fixed asset. We need to calculate the NPV. Why we...
Yes Sir. I also think that simple financial statements doesn't mean the insurance co. accounts. I will contact IAI regarding this. Thank you for...
Thank you for the reply Sir. But I came across a question in March 2018 exam, IAI (qus no. 23) which requires the preparation of revenue account,...
Is the preparation of financial statements for insurance companies also included in the syllabus of CT2?
In this qus, tax rate is not given and we need to prepare financial statements. In the solution, they haven't calculated tax expense. And hence,...
How much proportion of the share capital should the parent company hold to make a co. its subsidiary? And if the shareholding is less than 50%,...
Thank you so much.
Please anyone help me with the following MCQs. 1. The ans. is B. I am agree with it. But why not D? Right issue also results in increase in no....
oh okay. Thank you.