Hi, in the ST3 April 2005 paper, Q8 the examiners report says that for class B, we can see that NEP = NWP for 2000 and this could mean that the same volumes were written in 1999 as 2000. I don't understand why? Does it not just mean that everything written in 2000 has been earned I.e policies were written at the start of the accounting period (similar to class A)? I'm also confused by the next line in the examiners report which psays that the NEP for subsequent years suggests that the avg policy is written midway through the year I.e that policies are written evenly over the year. How do subsequent NEPs show this? Thanks
Hi there B_actuary. Have a look at the explanation attached. I also recommend you revisit Section 6 of Chapter 13, and pages 6 and 7 of Chapter 24. Kind regards, Katherine.
