Which statement about the Interim Reserve Exact method is true when s = 1?

• A. True
• B. False
• C. Only for s=0
• D. Only for s=2

Answer: (A)

The key idea is how the Inter im Reserve Exact method behaves with the parameter s. This method is built so that, at a particular value of s, the estimate it produces matches the true, exact interim reserve. When s is set to 1, the weighting or interpolation used by the method collapses to the form that yields that exact reserve, so the statement is true.

In other words, s = 1 makes the method reproduce the exact interim reserve, whereas other values of s can introduce approximation through interpolation. That’s why the claim is true specifically for s = 1, and not restricted only to s = 0 or s = 2.