Month: September 2009

Section B Drill Problem #10

There was an error in the solution to Drill problem B.10:

Stat Income(t) = Stat Income(1) + i x Stat Surplus(t-1)

The correct table is:

PY Stat Surplus GAAP Equity Stat Income DAC GAAP Income Dividends ROE
0 0 3,500 3,500
1 1000 3927 1,000 2,927 427 0 12.2%
2 2100 4396 1100 2,296 469 0 12.0%
3 3310 4912 1210 1,602 516 0 11.7%
4 4641 5480 1331 839 568 0 11.6%
5 6105 6105 1464 0 625 0 11.4%

Section F drill problem correction

Canadian exam only:

Please note that there is an error in the solution to #3 in the Canadian drill problems for section F. The NCPI for years 2 and 3 should be 1791 and 2075, respectively. This changes the following values:

  • ACB yr 2 = 1713
  • ACB yr 3 = 2134
  • Policy gain = 144
  • Tax = 58
  • ACB yr 3 after withdrawal = 1778

We will be posting the corrected solution on the seminar site soon.

Section D Outline updated

The section D outline has been updated to remove SN 108 (Asset & Liability Management) which was dropped from the syllabus.  (There was no video for that SN.)  I just forgot to delete it from my outline.

Anita