1. What is an insurance liability? Define the following term: Loss Reserve, Loss Adjustment Expense Reserve, Case Reserve, and IBNR. Why are these liability so difficult to estimate? Why is it so important to get estimate of these liabilities reasonably correct?
2. What are the primary responsibilities of the Appointed Actuary? Why is the role considered significant for solvency regulation? If disagreements with company management arise, what should the appointed actuary do to resolve the disagreements?