Hey guys, I know that the curriculum goes over the calculations of those two life insurance indices to help in the comparison of life insurance policies. Have you come across any AM or PM CFAI or Schweser mocks that have asked to do these calculations? Seems like a lot of cumbersome nonsense for unlikely marks.
No. This is not in any LOS. However I will practice this at the end. It is not complicate as it looks like on first instance. Those two differ only in one step and subsequent step and output is therefore different.
Saw one question for calculation of surrender cost index on the CFA AM mock(there are 2 AM and PM both case study based).
I cannot remember that I saw it in any test since 2011. Where did you see it? Maybe not in official tests.
The 2 mocks provided by the institute (along with the the topic wise) when you login to your Account.
You are right. I found NPI calculation in missing EOC - Individual Risk management.
lol so lame that they ask for those… of ALL the things they could ask… honestly… haha
One more thing on To Do List. Sh*t.
What about the 2 methods(needs analysis &human life) to calculate the amount of life insurance required?
Haven’t seen those on a mock yet, but I feel like those two methods are more testable than the indices I asked about originally, although evidently I might be wrong… haha
every example of surrender cost that I have seen has the discount rate and dividend reinvestment rate set to be equal. if they happen to be different on the exam, we use the dividend reinvestment rate for the ordinary annuity of dividends, correct? I assume that is the case but dont see it specifically addressed anywhere
I thought it was odd that this whole Reading, Reading 12, didn’t have any questions after the section in the CFAI books.
It has. Check on CFAI portal. There is missing EOCs for this reading including one question with Net payment Index. Funny.
Thank you. Didn’t see that link in the portal. I thought that was weird