Infinity
04-20-2010, 02:42 AM
Can anyone check if the following statements are correct:
1. Commutations - The commuted claim should be removed from the reinsurers Sch P and should appear in the cedents Sch P. It should be disclosed in Sch P interrogatory 7 by both cedent and reinsurer. But the LDF's can be distorted in the Sch P. LDF's decrease for reinsurer while increases for insurer. Feld talks abt this on page 28 but not very clear what he means.
2. Insolvent reinsurer - Feld talks abt this on page 28 of Sch P chapter. First he says that the ceded res falls to zero and net increases. This should imply that the Sch P reserves increases. Next he says even if the insurer is aware of the insolvency, the loss reserves are net of reins recov and prov for reins adjusts the surplus for the same. So is it the case that there is actually no effect on the Sch P reserves?
3. Reto reins - no effect
4. Structured settlements - Should decrease the LDF's.
1. Commutations - The commuted claim should be removed from the reinsurers Sch P and should appear in the cedents Sch P. It should be disclosed in Sch P interrogatory 7 by both cedent and reinsurer. But the LDF's can be distorted in the Sch P. LDF's decrease for reinsurer while increases for insurer. Feld talks abt this on page 28 but not very clear what he means.
2. Insolvent reinsurer - Feld talks abt this on page 28 of Sch P chapter. First he says that the ceded res falls to zero and net increases. This should imply that the Sch P reserves increases. Next he says even if the insurer is aware of the insolvency, the loss reserves are net of reins recov and prov for reins adjusts the surplus for the same. So is it the case that there is actually no effect on the Sch P reserves?
3. Reto reins - no effect
4. Structured settlements - Should decrease the LDF's.