Difference between revisions of "NAIC.SSAP-55"
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| − | + | '''Reading''': Statement of Statutory Accounting Principles 55, “'''Unpaid Claims, Losses and Loss Adjustment Expenses''',” paragraphs 1-6 and 11-19. | |
| − | + | '''Author''': National Association of Insurance Commissioners, Accounting Practices and Procedures Manual | |
| + | |||
| + | [https://www.battleacts6us.ca/vanillaforum6us/categories/naic-ssap-55<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>] | ||
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| + | {| class='wikitable' style='background-color: navajowhite; | ||
| + | |- | ||
| + | || '''BA Quick-Summary''': <span style="color: green;>'''Accounting Principles - Unpaid Loss & LAE'''</span> | ||
| + | |||
| + | * This statement establishes statutory accounting principles for '''recording liabilities for unpaid losses''' and loss adjustment expenses for property and casualty insurance contracts. | ||
| + | |||
| + | * It requires insurers to recognize these costs '''when an insured event happens''' and to establish liabilities for any unpaid claims. | ||
| + | |||
| + | * The guidance emphasizes the need for '''accurate estimates''' based on past data and current trends, and it requires '''detailed disclosures''' in financial statements to keep things transparent. | ||
| + | |||
| + | |} | ||
==Study Tips== | ==Study Tips== | ||
| + | |||
| + | The year of publication for the manual changes each year but the content generally does not. We will let you know if there is a major change. | ||
Spend 5 minutes max on this reading. | Spend 5 minutes max on this reading. | ||
| Line 31: | Line 47: | ||
Loss Adjustment Expenses (LAE) are classified into '''2 categories''': | Loss Adjustment Expenses (LAE) are classified into '''2 categories''': | ||
| − | * DCC ''(Defense & Cost Containment)'': covers defense, litigation, and medical cost containment expenses, whether internal or external | + | * '''DCC''' ''(Defense & Cost Containment)'': covers defense, litigation, and medical cost containment expenses, whether internal or external |
* Examples: | * Examples: | ||
:: - litigation management | :: - litigation management | ||
:: - rehab nurses | :: - rehab nurses | ||
| − | * A&O ''(Adjusting & Other)'': expenses other than DCC | + | * '''A&O''' ''(Adjusting & Other)'': expenses other than DCC |
| − | * | + | * Examples: |
:: - adjuster fees | :: - adjuster fees | ||
:: - attorney fees | :: - attorney fees | ||
| + | |||
| + | There was a question on this topic from an old SOA exam. See ''[https://www.battleacts6us.ca/vanillaforum6us/discussion/293/categorizing-expenses this forum discussion]''. | ||
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Latest revision as of 18:12, 25 July 2024
Reading: Statement of Statutory Accounting Principles 55, “Unpaid Claims, Losses and Loss Adjustment Expenses,” paragraphs 1-6 and 11-19.
Author: National Association of Insurance Commissioners, Accounting Practices and Procedures Manual
BA Quick-Summary: Accounting Principles - Unpaid Loss & LAE
|
Study Tips
The year of publication for the manual changes each year but the content generally does not. We will let you know if there is a major change.
Spend 5 minutes max on this reading.
BattleTable
- this reading has not been tested on any exam from the year 2012 to Fall 2019 when the exams stopped being published.
reference part (a) part (b) part (c) part (d) no prior questions
Full BattleQuiz You must be logged in or this will not work.
In Plain English!
Loss Adjustment Expenses (LAE) are classified into 2 categories:
- DCC (Defense & Cost Containment): covers defense, litigation, and medical cost containment expenses, whether internal or external
- Examples:
- - litigation management
- - rehab nurses
- A&O (Adjusting & Other): expenses other than DCC
- Examples:
- - adjuster fees
- - attorney fees
There was a question on this topic from an old SOA exam. See this forum discussion.
Full BattleQuiz You must be logged in or this will not work.
