SOA真题November2004Course8E（一）：北美精算师往年考试经典，无论你来自何方，北美精算师考试请100%全力去考。
　　COURSE 8: Fall 2004 - 1 - GO TO NEXT PAGE
　　Finance and Enterprise Risk Management; Core Segment
　　Morning Session
　　**BEGINNING OF EXAMINATION**
　　FINANCE AND ENTERPRISE RISK MANAGEMENT; CORE SEGMENT
　　MORNING SESSION
　　Questions 1-3 pertain to the Case Study.
　　Each question should be answered independently.
 
　　1. (7 points) Zoolander Life is very concerned about being able to secure reinsurance for its
　　term life insurance business line after January 1, 2005. Richard Scarlet, the reinsurance
　　intermediary, has been unable to secure a replacement for Rose Re’s YRT reinsurance
　　program at a reasonable price.
　　As an alternative, Richard Scarlet has proposed accepting a 100% funds withheld
　　coinsurance contract which is available from Cranberry Reinsurance Solutions. Under
　　that arrangement, the reinsurance allowance is set at 10% of ceded premiums, and the
　　risk charge is 1% of the outstanding surplus account for the prior year.
　　A simplified income statement for the term life insurance business line follows:
　　Zoolander Life
　　Projected 2005
　　Term Life Business Line
　　Before Reinsurance
　　Premiums
　　Gross 33,000,000
　　Ceded 0
　　Net Premiums 33,000,000
　　Investment Income
　　Gross 1,650,000
　　Ceded 0
　　Net Investment Income 1,650,000
　　Reinsurance Allowance 0
　　Total Revenue 34,650,000
　　Claims & Surrenders
　　Gross 19,000,000
　　Ceded 0
　　Net Claims & Surrenders 19,000,000
　　Reserve Increase
　　Gross 11,000,000
　　Ceded 0
　　Net Reserve Increase 11,000,000
　　Total Benefits 30,000,000
　　Expenses & Commissions 3,500,000
　　Gain from Operations 1,150,000
　　COURSE 8: Fall 2004 - 2 - GO TO NEXT PAGE
　　Finance and Enterprise Risk Management; Core Segment
　　Morning Session
　　(a) For Zoolander Life, show:
　　i. the change in the income statement for 2005 under a 100% funds
　　withheld coinsurance arrangement
　　ii. the outstanding surplus account as of December 31, 2005.
　　(b) Explain, from Zoolander’s perspective, the benefits of their existing YRT
　　reinsurance as compared to the benefits of Cranberry’s proposed arrangement.
　　(c) Recommend if Zoolander should purchase the reinsurance from Cranberry Re or
　　should retain the risk. Defend your answer.
　　COURSE 8: Fall 2004 - 3 - GO TO NEXT PAGE
　　Finance and Enterprise Risk Management; Core Segment
　　Morning Session
　　Questions 1-3 pertain to the Case Study.
　　Each question should be answered independently.
 
　　2. (11 points) Bonnie Hawke, Zoolander Life’s 2nd Vice President of Capital Planning,
　　proposes to allocate capital by line of business using the GAAP required surplus
　　methodology. You are given the following information.
　　Zoolander Life Proposed Capital Allocation
　　Line of Business 2003 Projected
　　2004
　　Annuity 100.0 103.0
　　Disability 150.0 160.0
　　Life Insurance 200.0 240.0
　　Variable 215.0 225.0
　　Corporate 367.6 390.0
　　Total 1,032.6 1,118.0
　　(a) Explain why a company might choose to allocate capital by line of business.
　　(b) Evaluate the appropriateness of the proposed allocation method chosen by Bonnie
　　Hawke as compared to other capital allocation methods.
　　(c) Using Bonnie Hawke’s proposed allocation, determine whether each line of
　　business is projected to create or destroy economic value in 2004 and whether
　　each line of business is projected to generate free cash flow. Show your work.
　　(d) Explain the implications of the results in (c) above.
　　COURSE 8: Fall 2004 - 4 - GO TO NEXT PAGE
　　Finance and Enterprise Risk Management; Core Segment
　　Morning Session
　　Questions 1-3 pertain to the Case Study.
　　Each question should be answered independently.
　　高顿网校之经典总结：以感恩的心态面对一切、包括失败，你会发现，人生其实很精彩。