NAIC.SSAP-55
| Updates for 2023-Fall are COMPLETE: No material changes. |
This statement establishes statutory accounting principles for recording liabilities for unpaid losses and loss adjustment expenses for property and casualty insurance contracts.
Study Tips
The CAS syllabus citation for this article is confusing. The syllabus says this is a new reading but it actually isn't. 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
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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 (shout-out to gsawhney!). See this forum discussion.
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