Hello, I am a retaker this year and the new section has a few new calculations:
Net pmt cost index
Surrender cost index
Human Live value insurance need
Needs analysis insurance need
None of the LOS say “calculate”. I have read the CFAI page which describes keywords; so, does this definitively mean that we will only have to “describe” and not calculate these things? OR, is it still plausible we will have to calculate them? EOC questions have calculations.
Thanks
I believe the EOCs have the calcs for Net pmt cost and Net surrender cost, so I assumed we should know it.
Calculations are pretty straightforward and very easy. The only tricky part is to remember when to switch your HP12c into BEG mode for cash flows and when to switch back to END.
Why are you a retaker?
Did you do enough mocks?
Analystdude thanks for the input.
No answer here but I’ll make sure to know them.
they added a separate EOC problem set because to many people complained there wasn’t enough examples etc etc.
it’s like 30 problems or so of multiple choice. go online and download for sure if you haven’t yet
Yeah there’s a cost index calculation question in the EOC practice, but there actually is not an LOS that specifically relates to insurance policy cost comparisons. My personal take is this is pretty deep in the weeds and fairly unlikely to be tested. However, I think the human capital and insurance needs concepts, and maybe the related calculations, are very testable. Just my opinion.
i dont see where they posted the EOC questions. Does anybody know where to go to get those questions?
There’s a link in Candidate Resources in the “Study” box called “Level III Supplemental Practice Problems”.