SOP.UnpaidClms

Study Tips

This reading is only 2 pages. It provides definitions of basic terms like claim and coverage as well as 3 Principles regarding unpaid claims estimates. The definitions are obvious and you can take a few minutes to scan them if you'd like (link provided below.) The only things you specifically have to memorize are the 3 principles.

Estimated study time: 30 minutes (not including subsequent review time)

BattleTable

Based on past exams, the main things you need to know (in rough order of importance) are:

• how to assess reserving issues using common sense

reference	part (a)	part (b)	part (c)	part (d)
E (2013.Fall #15)	reserve study design: - considerations	Friedland06.Diagnostics	Friedland06.Diagnostics	Friedland06.Diagnostics

In Plain English!

Here's a link to the source text:

STATEMENT of PRINCIPLES:   Unpaid Claims Estimates

Here's the essence of the 3 principles: (these are my own words)

Principle 1

• An unpaid claims estimate is reasonable if you have used reasonable assumptions & methods, and your results imply consistency with other available information (Ex: metrics like frequency & severity, comparison to prior quarters, comparison to industry data.)

Principle 2

Principle 3

A good test of your understanding is to see if you can take take the principles as stated in the source text and restate them in your own words. That's all I did above and I feel like I get what they're trying to say without having to memorize them.