Odomorik 15: Schedule P Flashcards Preview

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Flashcards in Odomorik 15: Schedule P Deck (24)
1

Schedule P Part 1

Loss & LAE and EP as of 12/31

2

Schedule P Part 2

Historical net incurred loss & DCC estimates

3

Schedule P Part 3

Historical net paid loss & DCC

4

Schedule P Part 4

Historical net IBNR for loss & DCC (before tabular discount)

5

Schedule P Part 5

Historical claim counts (CWP, open, reported)

6

Schedule P Part 6

Historical EP

7

Schedule P Part 7

Loss/premium data on loss sensitive contracts

8

DCC examples

Surveillance expenses, litigation management expenses, fees for rehab nurses, cost of engaging experts

9

AAO examples

Fees of adjusters/settling agents
Fees for appraisers, PIs, hearing representatives, fraud inspectors

10

DCC assignment treatment

Assigned by AY in accordance with associated losses

11

AAO assignment

"Any justifiable way"; preferred way is to apportion expenses in proportion to number of claims reported/closed/outstanding by AY

12

Salsub in schedule P

For information purposes only; paid losses always net of Salsub

13

Case reserves from Schedule P

Part 2 - Part 3 - Part 4

14

Issues with using Schedule P in actuarial projections

Allocations are judgmental
Internal pooling/reinsurance
IBNR as case (vol pools)
Only 10 AYs
Commutation distortion
Combining of DCC and A&O
Lacks management discussion

15

Claim frequency

Claim counts (5) / EP (1)

16

Decrease in settlement rates

Reduction in staff; growth in book with same staff; CAT claims -- understated projection

17

Increase in settlement rates

Produce overstated projection

18

Difference between P/6 and P/1

P/6 shows cumulative premiums earned; premiums may change at future dates (audits, retro rated, lags)

19

Interrogatory 1: Schedule P

EREs -- offered for free? How is DDR reserve reported (UEPR? Loss reserve?); Ensures coverage has been reserved for EREs

20

Interrogatory 2: Schedule P

Definition of LAE -- should be DCC and AAO

21

Interrogatory 4: Schedule P

Disclosure regarding whether reserves are net of non-tabular discounts

22

Disclosure of non-tabular discount

Only allowed if permission granted from state regulator; needs to be included in Notes to Financial Statements

23

Interrogatory 6: Schedule P

Claim counts reported per claim or per claimant?

24

Interrogatory 7: Schedule P

Any changes/special that user needs to be aware of if she relies on Schedule P data to assess adequacy of reserves (factors must be disclosed)