Hi, The acted notes give quite a lot of detail in this chapter specifically under the heading "basic features of a model" - page 9. The font is not in bold which indicates that it isn't part of the core reading though the heading is in the syllabus objectives. Are we required to know the types of models such as: - single policy profit test - new business model - existing business model - full office model And also details of: - policy liability model - expense model - asset model Is this part of the syllabus and is it examinable? Thanks.
These things aren't explicitly in the syllabus objectives, and so they will not be examined as "bookwork" questions, however they could be examined as part of an applications question. Rather than knowing exactly what appears as ActEd text in this section, it's more important to get a general feel for the sorts of models that might be used by a healthcare actuary. It's quite conceivable that a question could be asked on one of these topics, for example: Describe a model that you would use to model the capital requirements for a new product line. In this case, the question is an application of the Core Reading rather than a bookwork question and the ActEd text would be very useful to help answer it.
