Q. When calculating reserves using the gross premium valuation method, which cashflows are considered?

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Q. How are reserves calculated for life insurance policies?

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Q. What is the purpose of the "Margin for adverse deviation" (MAD) used in reserving?

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Q. Why are the assumptions used for reserving exercises more prudent compared to those used for pricing?

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Q. What is the role of the Margin for Adverse Deviation (MAD) in reserving for life insurance liabilities?

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Q. Which regulatory bodies provide guidelines for reserving practices in the Indian insurance industry?

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Q. What is the purpose of APS-7 issued by the Institute of Actuaries of India (IAI)?

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Q. What are margins used for in insurance pricing and reserving?

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Q. Which approaches can be used to account for the risk of adverse future experience in cashflow modeling for life insurance contracts?

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Q. What is a key consideration in determining the risk discount rate?

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Q. Why is reserving an important aspect of pricing in insurance?

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Q. How do the margins used in reserving differ from those used in pricing?

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Q. The approach not used for allowing for margins in cashflow approach is ____________.

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Q. In the CAPM formula, what is deducted from Em on the RHS?

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Q. Application of margin will result into investment return assumption than best estimate?

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Q. Which of the following APS defines the minimum MAD to be used for reserving?

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