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2007 Q26 (IASA2)

October 19th, 2011

NOTE: THIS IS THE 2ND BLOG OF TODAY (10/19)

First, if you downloaded the 10/19 errata file before 22:30PST today, please redownload.

Q. Why isn’t the admitted valued of funds held at the reinsured company (1,200) limited to 100 (the reinsurance payable on paid losses)?

A. This is not the only form of “collateral”. There are other forms that are not mentioned in the question. Eg reinsurance payable on unpaid losses, unearned premium, commissions payable. Because we are not told the value of these items, we do not have enough info to cap the admitted value of the funds held.
A.

Angelo Uncategorized

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