SOA Exams & Modules
[mathjax] Basic Terminology Classification of Variables There are two ways to classify variables in a predictive analytic context: By their role in the study (intended use) or by their nature (characteristics). By role The variable that we are interested in predicting is called the target variable (or response variable, dependent variable, output variable). The variables that are used to predict …
[mathjax] Making ggplots Basic Features Load library library(ggplot2) ggplot Function ggplot(data = <DATA>, mapping= aes(<AESTHETIC_1> = <VARIABLE_1>, <AESTHETIC 2> = <VARIABLE_2>, …)) + …
[mathjax] Data Types Create an integer append “L” to an integer: x <- 1L Data Structures Vectors Create a vector c(…) a <- c(1:5) b <- c(5:1) c <- c(“A”, “B”, “C”) d <- c(TRUE, FALSE, FALSE, TRUE, TRUE) print(a) [1] 1 2 3 4 5 print(b) [1] 5 4 3 2 1 print(c) [1] “A” “B” “C” print(c) [1] …
Module Overview Module Introduction Many government and quasi-government agencies regulate life insurance companies. They exercise authority over both the life insurance industry and the individual companies. Regulation and taxation affect product design—sometimes by incentive and sometimes by required standards. For example, the states in the United States have laws that govern solvency of companies and also often levy state premium …
Module Overview Domestic/Foreign/Alien Insurance Companies U.S. insurance departments classify insurance companies as “domestic,” “foreign” and “alien.” Insurance companies formed outside the United States may be authorized to do business in the United States. These non-U.S. companies are called “alien”. The McCarran-Ferguson Act Regulation of life insurance in the United States has always been primarily a responsibility of the various states, …
[mathjax] Linear Models Classification of Variables Intention (by their role in the study) target/response/dependent/output variable risk factors/drivers Characteristics (by their nature) numeric/quantitative variables categorical/qualitative/factor variables The Model Building Process Stage 1: Define the Business Problem Objectives prediction-focused (accurate prediction) vs. interpretation-focused (relationship) Descriptive Analytics: Focuses on insights from the past and answers the question, “What happened?” Predictive Analytics: Focuses …
Accounting Principles
OPBT Rollforward Analysis Summary Fee Based Income Insurance Operating Income Beginning – Last Year One-off – Claims Experience Actual claim profits – Expected claim profits, from basic and UDR products Actual claim profits – Expected claim profits, from PPR products Expense Experience Actual expense profits – Expected expense profits Lapse and Persistency Experience Anything else that are difficult to …
Issued: Dec 1987 Superseded by: ASC Summary Scope: For universal life-type contracts that were not addressed by FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises. For limited-payment long-duration insurance contracts and investment contracts and amends Statement 60 to change the reporting of realized gains and losses on investments. Applicability: {US-FAS97-6} Investment contracts, Long-duration contracts that do not …
Classification of Insurance Contracts
Insurance contracts are classified as short-duration or long-duration contracts.
Long-duration contracts: insurance contracts that are expected to remain in force for an extended period include contracts, such as:
whole-life,
guaranteed renewable term life,
endowment, annuity, and
title insurance contracts.
Otherwise, short-duration contracts.
most property and liability insurance contracts.
Defined Terms cedant The policyholder under a reinsurance contract. deposit component A contractual component that is not accounted for as a derivative under IAS 39 and would be within the scope of IAS 39 if it were a separate instrument. direct insurance contract An insurance contract that is not a reinsurance contract. discretionary participation feature A contractual right to receive, …
Product Classification Definition of Insurance Contract An insurance contract is a contract under which the insurer accepts significant insurance risk from the policyholder by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. Definition of Insurance Risk Insurance risk is risk, other than financial risk, transferred from the policyholder to the …
Please note that the information contained in this post is based on my own research and understanding of the topic. While I have made every effort to ensure its accuracy, I cannot guarantee that it is completely error-free. If you notice any errors or omissions, please let me know so that I can correct them. Applicability FAS 60 …
Coding & Programming
Purpose Extended formulas enhance and extend the capabilities of the Prophet programming language. They enable more complex calculations to be carried out than standard Prophet formulas. They are also able to retain the values that they have calculated from one model point to the next and from one loop to the next in a dynamic or stochastic run. Examples of …
Q_A_EXP IF ZERO_MORT = 1 AND AGE_AT_ENTRY < ZERO_TOL_AGE THEN 0 ELSE IF WL_POLICY = 1 AND t
Definition Types Definition type Description Formula A formula expressed in Prophet’s programming language. Constant A constant value. Global The value is read from the global file at run time. Parameter The value is read from a parameter file at run time. Model point The value for each model point is read from the model point file at run time. Generic …