Question about Q2 September 2004

Discussion in 'SA3' started by xixi11, Sep 26, 2007.

  1. xixi11

    xixi11 Member

    Hi Ian

    Sorry to bombast you with questions couple of days before exams. This is the only time I am getting serious about study. :p

    For the Q2 September 2004 part iv, i did not quite get the DAC part. In the solution it said DAC in 2007 c/f = (966-386)x(1071/12420).

    Where do 966 and 386 come from? I thought DAC is just the commission rate multiplied by the UPR. :confused: Same question applies to the 2008 net DAC c/f.

    Please correct me.

    Thanks a lot!!:)
     
    xixi11, Sep 26, 2007
    #1
  2. Ian Senator

    Ian Senator ActEd Tutor Staff Member

    We too couldn't agree the DAC figures in the examiners' report. They told us that any reasonable approach would have scored in this respect.

    Your understanding is correct though. The DAC is the acquisition percentage mutliplied by the unearned premium.
     
    Ian Senator, Sep 28, 2007
    #2
  3. xixi11

    xixi11 Member


    Thanks Ian. You are my star. If you know how long I have been cracking my head on this question, trying different ways to come up with the figures, you will be amazed..... But on the other hand, I should have started exam questions earlier.
     
    Last edited by a moderator: Sep 28, 2007
    xixi11, Sep 28, 2007
    #3

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