BattleActs100

Schedule P: Understanding Part 5

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Calculate the triangle of ratios of closed-to-reported claims. (See 2016.Fall #11). Also, identify which of the 5 statements (a/b/c/d/e) best describes the trend in closure rates.

  current score:
0.000
Enter ratios here:    (Ex: 78.2 or 78.2% not 0.782)
AY CY-3 CY-2 CY-1 CY
AY-3
AY-2
AY-1
AY
Based on ratios: (enter a/b/c/d/e)
interpretation:
(a) no trend
(b) gradual trend
(c) gradual trend
(d) spike in latest CY
(e) dip in latest CY
Part 5: Section 1 Closed WITH payment (Cumulative Number of Claims)
AY CY-3 CY-2 CY-1 CY
AY-3 ---- ---- ---- ----
AY-2 ---- ---- ----
AY-1 ---- ----
AY ----
Part 5: Section 2 Outstanding (Current Number of Claims)
AY CY-3 CY-2 CY-1 CY
AY-3 ---- ---- ---- ----
AY-2 ---- ---- ----
AY-1 ---- ----
AY ----
Part 5: Section 3 Reported (Cumulative Number of Claims)
AY CY-3 CY-2 CY-1 CY
AY-3 ---- ---- ---- ----
AY-2 ---- ---- ----
AY-1 ---- ----
AY ----

1

closed-to-reported ratio = [ (part 3) - (part 2) ] / (part 3)

Reason

Part 1 is not needed because it shows only claims closed WITH payment. We must also include claims closed WITHOUT payment in the numerator.

all closed claims = (reported claims) - (outstanding claims) = part 3 - part 2

Solution:
interpretation: a/b/c/d/e
Ratio of closed-to-reported claims: (Schedule P format)
AY CY-3 CY-2 CY-1 CY
AY-3 ---- ---- ---- ----
AY-2 ---- ---- ----
AY-1 ---- ----
 AY  ----
Ratio of closed-to-reported claims: (non-Schedule P format)
AY  12   24   36   48 
AY-3 ---- ---- ---- ----
AY-2 ---- ---- ----
AY-1 ---- ----
AY ----