I need assistance in understanding the following: Oct 2007 Q3 part iv)- l am not clear on how the incidence rates are derived, my thinking was that the rates for early, intermediate and advanced cancer diagnosis were independent and so was expecting i (1) to be probability cancer diagnosed at early stage while i(2) the intermediate one and i (3) being for advanced stage. part v) on allowing tax within the profit test model-l expected the ACCI components to be split into death and CI components and be taxed accordingly. what am l missing? Tax Unit 4 PAGE 9 of core reading I am not very familiar with UK taxation, why does the CR mention NI contributions as well? Short term insurers Overseas profits-CR says subject to complex rules, some foreign taxes may be credited against UK corp. tax or LESS ADVANTAGEOUSLY, be allowed as a deduction in computing UK taxable profits- please explain what this means? corp. tax losses under short term insurer taxation how are losses carried back and set against previous years’ profits? Corp tax due (under short term insurer taxation) Is there a specific reason why tax is pad from the 7th month from the commencement of the accounting period? Solvency 1 RCR I am failing to understand the equity and property shock scenarios. I have also gone over the response to a similar question on this but still cannot understand it. The equity scenario seems to be looking at the equity risk premium (relation between earnings yield on FTSE and long term gilt yield) and the capital growth in the index (relationship between its average level over the previous 90 days and its current level), what does this mean in practice? The property fall scenario seems to be looking only at the property index growth (i.e. relationship between current level and its average over 3 years), what does it mean in practice? What is the Relationship between Pillar 1 and Pillar 2 Capital Acted Notes say the FSA will specify any additional capital to be held over and above the core Pillar 1 requirement (see self assessment question 11.4, chapter 11 of acted notes) Financial resources requirement This is a section under short term insurer solvency requirements but it seems to apply to both short term and long term insurers. Please confirm. If so if answering questions on solvency issues for long term insurers is it not better to start off with this introduction? CRR Acted notes say for most long term insurers this is equal to MCR. What else could CRR be? What is the Guarantee fund for long term insurers? CR defines it for short term insurers What is the relationship between CRR, Guarantee fund and MCR? Under MCR calculation for short term insurer, on the brought forward amount, ACTED notes PAGE 37 ON CHAPTER 11, para 4 says …being the GICR calculated as at 31 Dec 2009 while the core reading notes say 31 Dec 2008, what is the correct date? Overview of the FSA Return-long term insurers Is it important to also know what the forms are for long term insurers? Under MSB reporting What are the examples of investment income, gains and losses and other CFs not attributable to the technical accounts (found in the non-technical account)? DAC Please explain what the notes say on the impact of DAC being reduced by the need to re-spread front end loads.
