Question on an answer
Near the bottom of the wiki, there is a "less important" question where the answer seems to be already in the question. Is there more to this or is it really this straightforward?
Question: What timing issues can arise with claims paid by the entity but not yet reimbursed by an excess insurance carrier?
Answer: when claims are paid but not yet reimbursed by excess insurance carriers
Comments
The article says this situation is similar to payments by TPA and reimbursements to TPA. Here's what they say about both of these situations:
_To the extent that payments have been made by the TPA but not yet reimbursed to the TPA, the entity’s accrual will be greater than the actuarial estimate. To the extent that the entity has paid the TPA in advance, the accrual will be less than the actuarial estimate.
Some companies adjust their accruals to account for these types of timing differences, while others carry a separate timing accrual. Other companies treat the timing difference as immaterial and make no adjustment unless an unusual payment is made. Actuaries may or may not assist the company in calculating such adjustments. The need for such adjustments highlights the need to document the basis for the actuarial analysis.
A similar timing issue can arise when a claim has been paid by the entity but not yet reimbursed by an excess insurance carrier._