2018 Spring #11
I had included the removal of salvage and subro from my calculation, which was incorrect. Why is that? There is no mention that it is already removed and it is my understanding that Sch P can be net or gross of salvage and subro.
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I had included the removal of salvage and subro from my calculation, which was incorrect. Why is that? There is no mention that it is already removed and it is my understanding that Sch P can be net or gross of salvage and subro.
Comments
From Odomirok page 329:
In Schedule P reserves can be stated either gross or net of anticipated salvage and
subrogation. If the reserves are stated net, column 23 in Schedule P discloses the amount of anticipated salvage and subrogation.
The same goes for paids.
In the problem, non-zero S&S paid and anticipated figures were given. As per the above, this implies that paids and reserves must have been stated net of S&S.
Awesome thank you!
Sure, good luck.