Fall 2019 Q15
Hi - I have a clarifying question on the received portion of the calculation. Is received the amount received in the last 90 days, or the amount received prior to 90 days being overdue? I originally excluded the $75,000 from the RECV portion of the slow-paying formula since it was paid 90 days overdue, but the solution included it and labeled it as "paid in the last 90 days" - just looking for clarification on this, thanks!
Comments
Also, would we assume the $800 recoverable on known case loss and LAE reserves are from the claim at the bottom of the table? If these were 2 separate amounts (say known recoverable on case loss and LAE reserves for claims PRIOR to 2018), we would have to add 800 twice to the total recoverable, correct?
"paid in the last 90 days" refers to the amounts paid in the last 90 days of the year, i.e. during the 90 days prior to 12/31/2018.
Could you explain what you mean by "2 separate amounts"?
The 800 recoverable on known case loss and LAE reserves I assume is the same 800 in the last unpaid claim at the bottom of the table (thus the 800 is only included once in the total recoverable) - would both need to be included if they referred to different quantities (for example is the 800 recoverable on known case loss and LAE reserves prior to 2018, and then the claim at the bottom of the table was still listed)
In that specific situation, you would be counting both of the two 800's in the total recoverable.
This question happened to have all claims in the current accident year, but provision for reinsurance would generally cover all relevant accident years. Is this what you are wondering about?