Definition of 'Reinsurance Payable on Paid Loss and LAE'
Is this payable from the perspective of the insurer or reinsurer? In the practice problems, it is listed as a liability for the insurer. It seems like this should be reworded to say, "Amounts owed to reinsurer from assuming insurer for ceded paid loss and LAE."
Otherwise, it doesn't make sense that it would be listed as a liability for the insurer, if it is actually a liability for the reinsurer (as it suggests in the CAS solution).
Comments
The exam question in the Battle Card is from the reinsurer's perspective and a payable is always a liability. (I think the way they worded the question may have been a little unclear since people may have thought everything was supposed to be from the insurer's point of view.)
(P.S. I'm not quite sure which "practice problem" you're referring to.)