TIA's Exam 8 Blog

Hello everyone,

I just posted the following update and clarification to the online seminar material:

1.  On the TIA 2015 practice exam, the final answer in the solution to Q19 showed incorrectly, since I had accidentally calculated it using 0.404 instead of 0.0404.  This has been fixed.

2.  In the Robertson paper (including notecards and especially detail video 1), I clarified the relationship between an excess ratio and a loss elimination ratio.  When we are talking about a limit, the losses eliminated from the insurer’s perspective are those in excess of a limit, so the loss elimination ratio at a limit equals the excess ratio at that limit.  When we are talking about a deductible, the losses eliminated from the insurer’s perspective are those below the deductible, so the loss elimination ratio at that deductible equals 1 minus the excess ratio at that deductible.  This distinction comes up throughout the syllabus.

Thanks,

Josh

Hi everyone,

I just posted a correction to the solution of 2014 Q15 in the NCCI 2 problem set.  The last line of the solution had the order and sign switched. The shortfall is -0.55%, not +0.55%.

Thanks,

Josh