NCCI.Circular — BattleActs Exam 8 Forum

NCCI Circular Problem 1 Steps 16-17

jmoore13 — Fri, 29 Sep 2023 12:57:33 +0000

Hi,

When selecting the "winning" entry ratios, is it just literally which one is absolute value closest? Or is there a restriction about going over / under? It didn't seem like there is but wanted to check.

Thanks!

line item 14 & 15

tracyguo8 — Sun, 10 Sep 2023 16:58:17 +0000

Hi,

In Fisher, the balance equations include the tax multiplier when calculating the charge difference and entry ratio difference between min and max premium.

Why for NCCI Circular, we didn't include tax multiplier when calculating the table of agg loss factors value difference (item 14) and entry difference (item 15)?

Thanks.

NCCI Circular

xuchaofan8 — Fri, 23 Sep 2022 03:35:34 +0000

Hi,

The reason why there is no old exams for this paper, is that because it is a new paper? Is it very different to the old NCCI retrospective rating plan?

Thanks,

CFX

Practice problem - excess loss premium

tracyguo8 — Sun, 18 Sep 2022 23:18:23 +0000

In the practice problem(pdf/excel), we are asked to calculated basic perm factor.

If the question also asks for excess loss premium, is it (unlimited loss -limited loss)* loss conversion factor c?

Thanks,

2018.Fall #14 - Table Values

ph2warne — Mon, 25 Oct 2021 17:29:33 +0000

Your excel version of the exam pre-populated the table values for the max/min ELF's; they were not given on the real exam. Just want to double check if this is a case where the tables we would have needed here were not provided in this year's study kit. To use Appendix B, we need to use Expected Claim Count and Excess Ratio with Appendix A, but I don't believe we have what we need to do this in this specific problem.

Am I missing another means of accessing the ELF's with the tables we do have? I realize the specific numbers may have changed (or wrong subtable in our study kit), but want to ensure I'm not missing another path through the tables if they do end up making us manually dig through them for the numbers we need.

2018.Fall #14

tubaguy8 — Mon, 25 Oct 2021 01:21:44 +0000

In 2018.Fall #14 (https://www.battleacts8.ca/8/pdf/Exam_(2018_2-Fall)/(2018_2-Fall)_(14).pdf), where do they get the values 1.55 and 0.168 in part b? I believe the question is outdated, but I'm just curious.

One of the solutions:

Charge(Rg) = (1.65 – 1.55)/(5×0.6) = 0.04

Savings(Rh) = (0.168 – 0.15)/(5×0.6) = 0.006

I (experience) = 0.6 × (9,000,000) × (0.04 – 0.006) = 183,600

Thanks!

Excess Loss Premium and Excess Loss Factor

mago — Fri, 22 Oct 2021 22:04:29 +0000

Are we not double-counting LAE if the Excess Loss Factor includes an LAE% and the Excess Loss Premium also adds provisions for LAE through the Loss Conversion Factor?

Excess Loss Factor = Excess Loss Pure Premium factor⋅ELR⋅(1+Loss Adjustment Expense %+Loss Assessment %)

Excess Loss Premium = (Excess Loss Factor)⋅(Standard Premium)⋅(Loss Conversion Factor)

Problem Set 1: W-NCCI-Circular2

ph2warne — Fri, 15 Oct 2021 20:00:16 +0000

We calculate using the Balance Equations: r2 - r1 = 4.01 and phi(r1) - phi(r2) = 0.7993, yet select r1 = 0.16 and r2 = 4.21 with difference = 4.05, and phi(0.16) - phi(4.21) = 0.8064. Is there a reason for this?

I had initially chosen r1 = 0.17 and r2 = 4.20, which gives r2-r1=4.03 and phi(4.2)-phi(0.17)=0.7987, which is still not precise but the closest to target among the options given. Am I missing a detail justifying the selection in the solution? I'm not sure I have located the referenced "line-by-line wiki discussion" specifying the details of this secondary example. I understood the first example that was directly discussed in the wiki and source material.

Thank you.