Updated notecards will be available very soon.
I am currently working on an additional set of practice exams, which should be available a month or so before the exam.
As a reminder, if you email me about an exam question, please let me know the paper that it is from. Thanks in advance.
Hi all,
I will be posting blogs throughout the year, so please be sure to check periodically.
I just uploaded a spreadsheet with errata… I will also be updating this throughout the year.
It is very important to note that my study material is really just focused on the Learning Objectives and Knowledge Statements from the CAS syllabus (which are much more clearly defined than the other exams). I have therefore omitted sections from the papers & textbooks that discuss topics that I believe to be off-syllabus. This should help you make the most of your study time.
If you have any questions, do not hesitate to send me an email (angelo@theinfiniteactuary.com). If you are asking about a particular exam question, PLEASE reference the relevant paper that the question is from (so I can easily locate it).
Regards,
Angelo
In the 2010 Exam 8, 28b (Goldfarb): we need to calculate the company volatility. Since we are not given the asset volatility, it is fair to assume that the asset volatility is 0 (like I did in the sample solution). I’d recommend stating your assumption.
I am getting a few questions about the solution to 2003, Q42 (Exam 9, Robbin). Again, my solution uses the exact methodology from Robbin’s exhibits
-everything (including the premium) is “discounted” to time 1
-the underwriting tax is based on the components of income again discounted to time 1 (prem at time 1 – expenses at time 1 – losses at time 1; where losses are discounted at the risk adjusted rate)
-when calculating the tax on investment income, remember that the investment income is based on the amount of equity. Also, we have 2 yrs of investment income – it will fall in the 2nd yr due to the lower equity (since equity is proportional to loss reserves).
I am getting a number of emails about past exam questions involving interest rates in BKM16; and also emails regarding Feldblum IRR.
BKM15/16:
-many questions do not specify how often interest rates are compounded. In these cases, I usually assume that the rates are compounded semiannually. Whatever assumption you make, I’d recommend stating it in your solution
Feldblum IRR:
-there is some confusion regarding the initial reserve to establish, in cases where it is not mentioned. The rule of thumb that I like to use is that:
i. if premium > loss + expense, I set the reserve to the unearned premium reserve
ii. if premium < loss + expense, I set the reserve to the loss reserve (in this case I would also explicitly state the assumption that the insurer knows about the loss at inception).
Using this rule, I recognize premium deficiencies when they occur (off-syllabus)
Hello everyone,
Here is a list of the new material that was just uploaded and what is included:
•D.5.s – Additional solution for past exam 2008, Q14
•Additional Materials: Practice Exam – Updated questions and solutions.
•Additional Material: Additional Questions & Solutions – New questions and answers for several articles from Section D & E.
•Additional Material: Errata – General corrections – Updated 9/27/2010
I have added combined study manuals. These include all of the notes, problems and answers from each reading. Some students prefer to print each study manual as they study that reading, while others have expressed the desire to more easily print them all out at once. Now you have both options.
Note – it is the exact same material, just combined into 4 pdfs.
Let me know if you have any problems. Thanks and good luck studying.
Ken
I am moving the study manuals from the online section to the study manual section. The study manual page will have each study manual posted individually, and at the top, there will be combined files with the study manuals from the various sections. They are the same manuals. The combined are easier to download and print all at once. The individuals may be good if you just need that one manual before viewing a video or two. The past exam problems will be located in the combined section. I will be adding the manuals from sections B and E as I receive them from David and Angelo. Please note that I will not post a combined manual for these sections until the individual manuals are complete.
Later in the sitting, I will post some quizzes and a practice exam. This will be right after the live seminar.
Right now, I believe one or both are having trouble with their TIA email addresses, so you may not be receiving email responses from them. I will try to get these fixed this week.
Good luck studying!
Ken