Monitoring Experience (Ch31)

Discussion in 'SP2' started by Scarecrow, Feb 21, 2009.

  1. Scarecrow

    Scarecrow Member

    I have a couple of questions on this chapter:

    1. There's relatively little core reading and a lot of explanation around it. How often is this topic examined and to what level of detail? It seems from the core reading volume that the examiners would expect much more broad brush knowledge than the detail provided by the notes?

    2. Q31.23 - the solution says "The EV deviation from expected value will take account of the future loss of profits on decrement while the valuation analysis looks only at free assets." This seems to contradict what the core reading says about AoS in the first bullet in section 4, that the company will use AoS to "show the financial effect of divergences between the valuation assumptions and actual experience..."

    I must be missing something, please enlighten me! Thanks
     

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