Spring 2019 #21 a.

The question asks you to identify four items form the table that must be included in Exhibit A of the SAO. In Mr smith's example, there is also a Premium Reserves section. If the table has included direct and assumed unearned premium reserves for long duration contracts and net UEP reserves, would those have been acceptable answers as well? I saw that unearned premium was not an acceptable answer in the examiners report.

Comments

  • Yes, if they had given you that information for long duration contracts, it should be included in Exhibit A.

    Regarding the Unearned Premiums of $475 provided in the top section, those are not intended to be listed in Exhibit A under "Other Premium Reserve Items". According to COPLR:

    • Typical items regulators see listed as “Other Premium Reserve Items” are Medical Professional Liability Death, Disability & Retirement (DD&R) unearned premium reserves (UPR) and Other Liability Claims DD&R UPR. Depending on the nature of these exposures, these items may be also listed on Exhibit B, Line 12.2 as claims made extended UPR.
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