Why can't indifference curves intersect

(10 points) With respect to Source of Earnings (SOE) analysis: (a) (2 points) (i) Define SOE analysis. (ii) Outline the benefits of SOE. (b) (4 points) You are given the following : 2017 Item Expected Actual Premium 15.0 14.9 Product-related Investment Income D.5 0.5 Surplus-related Investment Income 0.4 0.2 Benefits Paid on Decrements 1.5 1.7 Reserves Released on Decrements 0.3 0.4 Expenses 0.2 0.1 PfADs released 0.1 0.2 Pricing Gains/Losses 0.0 -1.0 Impact from all Assumption Changes 0.0 -5.0 Impact from Renegotiating Reinsurance Treaty 0.0 0.3 Surplus Expense 0.7 0.4 Error Correction 0.0 0.4 (i) Construct a Source of Earnings statement for 2017. (ii) Recommend actions to improve earnings based on the results of the SOE. (c) (4 points) A company is considering moving from a traditional SOE analysis to a market consistent embedded value (MCEV) earnings analysis. Describe how the earning analysis will change under the MCEV approach versus the traditional SOE approach.(1 1 points) QWX Life is a Canadian life insurance company. QWX Life only sells two non-participating products, a Whole Life product in Canada and an Annuity product in the United States. You are given the following net present value of asset and liability cash flows discounted at the corresponding scenario discount rates: Whole Life Annuity LICAT Scenario (sold in Canada) (sold in the United States) Initial Scenario 100 30 Scenario 1 20 10 Scenario 2 15 20 Scenario 3 80 15 Scenario 4 70 5 (@) (3 points) Calculate the interest rate risk requirement for QWX under LICAT. Show all work