SSAP 55 and 65

Question 1

Liability disclosures

Answer 1

Anticipated SalSub,
Liability balance at beginning of each year,
Policies to estimate liabilities
Reason for changes in prior year losses

Question 2

Extended reporting, indefinite period

Answer 2

Premium fully earned at inception of contract, liabilities should be recognized immediately

Question 3

Extended reporting, fixed period

Answer 3

Premium earned over the term (UEPR for unexpired portion), losses recorded when reported

Question 4

Discounting disclosures

Answer 4

Tables used, rates used, discounted amount, amount of tabular discount by LOB

Question 5

Discounting disclosure if rates have changed

Answer 5

Amount of discount under old rates
Amount of discount under current rates
Change due to change in rates/assumptions
Amount of non-tabular discount

Question 6

Testing adequate UEPR for long-term policies

Answer 6

1) MBE of amounts refundable at reporting date
2) Gross premium * projected future loss ratio
3) Projected future gross losses to be incurred during unexpired term minus PV of guaranteed premiums;
UEPR should not be smaller han largest result

Question 7

Deductible recoveries, no collateral

Answer 7

Over 90 days, nonadmitted

Question 8

Deductible recoveries, with collateral

Answer 8

10% of deductible excess of collateral is nonadmitted

Question 9

AE disclosures

Answer 9

Reserving methods
Amount incurred
Description of LOBs affected
Five years’ activity

Question 10

Policyholder Dividends become liabilities…

Answer 10

Immediately when they are declared

Question 11

Functions of FIO

Answer 11

Coordinate federal efforts; develop federal policy with regards to int’l insurance matters; consult with states regarding insurance matters of national importance

Question 12

FIO essentially

Answer 12

Has the power to act like a national regulator

Question 13

High-deductible policy liabilities

Answer 13

Held net of recoverables