• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

April 2013 q9

E

error404

Member
Hi,

I am confused by part of the examiner's solution to q9 on the April 2013 paper.

When the claims are adjusted for level of cover (limits and excesses) I am unclear as to why to get the adjusted incurred, the original incurred is multiplied by 0.55/ILF. In particular I am confused where the 0.55 came from. Please could someone explain why this is done?

Many thanks in advance
 
ILFs for a layer are the difference between the ILFs at the two limits. So 0.55=1.25-0.70. This is the layer in 2013.

Then to change losses from an earlier year, you first calculate the ILF for the layer from that earlier year. Then multiply the losses by the ratio of the two ILFs (2013 layer ILF divided by earlier year ILF).

Full details in ASET.
 
You must log in or register to reply here.
Back
Top