I have added a study guide for Werner Appendix A and new videos for Chapter 14. I am currently recording new videos for Feldblum. I should have the first couple ready Thursday. After Feldblum, I will post a study guide for Appendix B and record videos for App A & B. In the coming weeks, I will post study guides for Apps C & D and videos.
Good luck studying.
I have corrected some typos and formatting errors listed below. These items were fixed in the Werner study manuals on January 11, 2012. If you printed the study manuals before this date, there is a new file with the corrected pages that you can print and replace in your manual. The page numbering in Chapter 5 will be off by one after inserting the solution to 2006#26.
Chapter 5
• Modified diagrams to be more readable on pp. 4-6, 9
• 2006#26 – Add comment on solution
• 2011#4b – Last part should be (1 + 0.75 + 0.5 + 0.25)
• New Problem #2 – Fixed a formatting error
Chapter 6
• 2008#19 – the revised effective comp rate formula should be (0.35)(0.5) + (0.09)(1.0) + (0.61)(2/3) = 0.6717
• 2009#22 – Fixed a formatting error on problem
• 2009#22c – the formula is missing + signs before the case reserves of 0 and $50k. The answer is correct
Chapter 8
• 2006#36a – Answer is missing a negative sign (i.e., should be -10.8%)
• 2011#9a – The premium trend factors should be 1.015^2 and 1.015^3
Chapter 9
• 2011#15 – Fixed an Excel formula in solution
UPDATE 1-12-2012
I have also updated the CAS Ratemaking Principles. I corrected the solution to the 2006 problem and added a solution to the 2009 problem. These corrections are not in the Errata packet. Plus, I uploaded the study manual for Friedland Appendix A & B.
All of the Ratemaking manuals, problems, quizzes and exams have been updated. The notecards have not changed from last year. I will need to record new lessons for Chapter 14 because of changes made to the manual. Plus, I am rerecording Feldblum. All other videos are good to go.
For Reserving, most of the manuals, problems, and quizzes have been updated. I am working on Chapters 15-17 of Friedland, and I will have these posted by Wednesday next week.
Some notes:
1. Everything that is posted is good for the 2012 syllabus;
2. I plan on recording videos for Werner 14, Werner App A-E, Feldblum Asset Share, and Friedland 15 in January; and
3. I may make some slight tweaks to the quizzes and practice exams. This would be in January also.
Happy Holidays!
Here is an introduction post from last sitting. This is the way I would approach an exam.
If you are registered for the online seminar, you will have access to the “Lessons” tab, which includes the online videos and mp3 downloadable files. You will also have access to the material in the “Study Manual” tab. The study manual includes outlines, past exam problems, and new problems. In the study manual section, you will also find a suggested study schedule, notecards, quizzes and practice exams. There are tabs for both ratemaking and reserving, depending on the seminar you are taking. If you are only attending the live seminar, you will have access to all of the material in the study manual section.
Here are some comments on how I would approach studying for this exam.
1. I always suggest reading the article first. I typically like to mark on the reading (yellow highlighter, notes in the margin). Remember, you don’t have to understand everything on your first pass through, so don’t spend too much time on any one article.
2. I like going through the past exam problems just to see the kind of problems I’m looking at. I work them if I can, but again, I don’t spend too much time on any one problem. I usually don’t look at the most recent problems, saving them for later, unless there just aren’t any other questions. I like to mark the text where I find the answers with a blue highlighter. Anything in blue or green (because it was marked in yellow from 1.) has been asked before. I just need to understand the past exam questions. Anything that remains in yellow is something I thought looked important during my first pass but hasn’t been asked yet. I liked writing my own problems from this material and saving them for my second pass. You could also make notecards (or edit the ones I provide) and/or mark the study manual if you prefer.
3. Here is where the videos come in for some people. Some students like using them during their first pass. I would have probably used them on my second pass. I liked getting through all the readings as quickly as possible on the first pass.
4. I would always start in early January and plan to be through my first pass by about February 28. Note that if you are only taking half the exam, you won’t need to start so early. The second pass is where I think the videos work really well. On the second pass, I would watch the videos, work the problems with the videos, and then go through all of the problems (past, new, and ones that you write). Now you can work on understanding the material. However, note that you need to cover the material twice as quickly on your second pass. I like to be through this pass by about April 1. You should really feel comfortable with the material after this.
5. In April, this is where you need to log the hours. Make sure you can work every problem/question from the past and new problems section. Rewatch videos for sections that are still giving you trouble. Finally – memorize. April can make the difference between a 5 and a 6.
6. I usually want you to feel good about the material before dipping into the quizzes. It is most effective to take these under test type conditions. I usually take the past exams and practice exam starting about 1-2 weeks before. Again, it is important to use exam like conditions. If you haven’t worked the 2010 exam problems, it is a good indication of how you can expect to feel when taking the exam. Timing is crucial when taking an exam. Work on timing on the quizzes and practice exams. I have seen many students get 5s because they didn’t get to the last 3 or 4 questions. Write thorough answers, but don’t fail because you spent half an hour on a problem. I usually target about 2 – 3 mins per point when practicing problems.
7. The audio files fit in wherever you find them most effective (driving/riding into work, cleaning the house, at work).
I’m sure I forgot a few things. Please note – the method to use is what works best for you. I would usually target about 15 hours per week in January and February, 15-20 in March, and 20-25 in April. Of course, it is less important how long you studied, and more important how well you studied. When I took part 10, I was not ready two weeks before the exam and was forced into about 120 or so hours in the last two weeks (it killed me). Never give up. Study until that last day.
Good luck.
Welcome to the 2012 TIA Part 5 Seminar. Fortunately, not much has changed for last year. I am updating the study manuals with new problems and minor typo fixes. As of November 18, I have Chapters 1-6 posted for Ratemaking and Chapters 1-14 posted for Reserving. The suggested study schedule, past point distribution, a general “Things to Know” file, notecards, quizzes, and practice exams are also available. I highly suggest that you don’t even peak at the practice tests and quizzes until at least February, even if you are test ready. If you become test ready too early, then you may not be as sharp as you need to be when the real exam comes in May. All of the videos are good to go. Throughout December and January, I’ll add some additional videos on problems that I feel are very important or ones that I’m getting emails on. I’ll label these videos by the problem number.
It is still extremely early. I would be taking a break for a few more weeks if I were studying for this exam.
Good luck.
Ken
Chapters 4-6 have been updated. Chapter 4 & 5 were due to slight wording changes in the 2011 text relating to inforce exposures for other than annual policies. With this, I updated the 1996 problem in Ch. 5 and New Prob #2 in Ch. 4. Ch. 4 had typos on 2010 #17 in the dates that were corrected. Also in Ch. 6, 2010#20 had typos in the dates.
Chapter 11, 2010#30 - the full coverage net losses were corrected to 525,000
Feldblum, NP #6, the manual is correct,not the video. The fixed expense of 3.8% should be based on the premium before discount. I can’t imagine this being asked.
Quizzes 5, 8 & 10 have typo corrections - Q5#3, the answer should reference 2c, not 1. Q8#1, when calculating the territory adjusted exposure, I used the first iteration class rels instead of the given class rels. The text uses the given rels. The prior Finger paper would have used the first iteration class rels. I apologize for this oversite. Q10#1 originally used 75% fixed for L&F. This has been fixed.
I wasn’t planning on recording anything for the AAA Classification Principles, but I had a request, so I will early next week. It is all memorization.
Past Problem 2010#28 - You can do this problem many ways. The model solution doesn’t exactly follow the text, but since the expense fee also gets the 6.25% increase, it works out. I would actually prefer seeing it as follows:
Bp = 90 * [1.0625 * 110 - 14.610 / (110 - 13.75) / 0.9789474 = 97.68
You can use extension of exposures or the Approximated Avg Rate Differential Method, but it exposes a flaw in the problem. I have worked it below using extension of exposures. Using the proposed expense fee (i.e., Ap = 14.61), you an average premium of 99.705. This is based on the initial seed base premium of $90. Next, you adjust this. However, the current average premium is wrong in the problem. They give you $110, but if you calculate it out, you actually get 100.6225 (which you would need to match their $97.6 answer).
So the calculation would be
90 * (100.6225 * 1.0625 - 14.61) / (99.705 - 14.61) = 97.62.
Now, if you were to put this 97.62 in the calculations, you would get an average premium of 106.91. You can see that 106.91 / 100.6225 - 1 = 6.25%
Now with that being said, you can’t be expected to actually calculate the current average premium. You just have to take their word for it (and they should be ok with that). So, using either the extension of exposures or approx avg rate diff methods, you get a proposed base of around 108.16. This gives a proposed average premium of 116.875 which is a 6.25% increase on $110.
1. Several pages of Things to Know has been posted from the live seminar.
2. Additional problems have been posted to the quizzes and practice exams section. Some of these are extremely hard. I also plan on adding another file next week.
3. Side note - to calculate expected emergence between t & t+12, always use the technique Friedland uses
IBNR/%unrpt @ eval * (%rpt @t+12 - %rpt@t)
I have posted an outline for the Risk Classification Principles. I still need to record a video. Not a ton to study.
It has been brought to my attention that I am missing a Feldblum video (#3). I plan on re-recording all of Feldblum over the next two weeks.
I will also be adding some pre-quiz problems and two practice exams. The pre-quiz problems will be good to work on your second or third pass and hopefully give you some more practice working problems.
Good luck studying.
I have updated the studying manual for Part III, Chapter 9. I added problems covering the Benktander method.
I have added notecards for Friedland.
For those that have a copy of the 2010 Reserving manual, the only major changes are adding Chapter 17, adding 2010 problems, and adding Benktander problems to Chapter 9.
Old News - 1/7/2011
First, note that I use “Reserving” to refer to “Estimating Claim Liabilities” (section 5B).
I am finishing the Chapter 17 outline and problems. I will get this posted in the next few days. After this, I will work on posting the notecards, quizzes and practice exams.