My understanding is that ADC covers the insured against an adverse development in the reserves (i.e. beyond their current reserved level) of an old book of business (i.e. business that is already written and off risk). In contrast aggregate XoL/SL would cover the current year. I could be wrong - I'm sure Ian will be along soon to correct me if so.
The LPT vs RO solution was answered here.
I think the course notes are (or at least were) based on a Swiss Re publication: The Picture of ART.
Last edited by a moderator: Oct 22, 2008