teddybear
04-04-2006, 11:15 PM
I had difficulty understanding the solution in All10 for 2004 Q56 (the ending reserving columns. Could somebody clarify this for me? Thanks.
2004Q56. The ABC Insurance Company never had any asbestos-related claims or exposures, but has some pollution exposure and two claims were filed. ABC has no reinsurance applicable to pollution exposures.
Year IBNR&Bulk at EOY LAE paid
1995 100,000 0
1996 400,000 10,000
1997 1,250,000 100,000
1998 1,300,000 300,000
1999 900,000 250,000
2000 800,000 60,000
2001 800,000 20,000
2002 450,000 20,000
2003 400,000 20,000
Reserves for all loss adjustment expenses are included in the IBNR and Bulk reserves.
Claim 1 (on 1985 policy):
reported on March 1, 1994 and reserved for 1
cased reserve increased to 100,000 on July 7, 1997
case reserve increased to 1,000,000 on May 1, 2000, in preparation for trial
case settled for 800,000 on September 1, 2000
Claim 2 (on 1999 policy):
reported on May 7, 2000 and reserved for 500,000
case reserve increased to 700,000 on June 2, 2002.
Given the above information, draft tables that displayed the information required for the Note on Asbesto/Environment reserve of the 2003 AS.
2004Q56. The ABC Insurance Company never had any asbestos-related claims or exposures, but has some pollution exposure and two claims were filed. ABC has no reinsurance applicable to pollution exposures.
Year IBNR&Bulk at EOY LAE paid
1995 100,000 0
1996 400,000 10,000
1997 1,250,000 100,000
1998 1,300,000 300,000
1999 900,000 250,000
2000 800,000 60,000
2001 800,000 20,000
2002 450,000 20,000
2003 400,000 20,000
Reserves for all loss adjustment expenses are included in the IBNR and Bulk reserves.
Claim 1 (on 1985 policy):
reported on March 1, 1994 and reserved for 1
cased reserve increased to 100,000 on July 7, 1997
case reserve increased to 1,000,000 on May 1, 2000, in preparation for trial
case settled for 800,000 on September 1, 2000
Claim 2 (on 1999 policy):
reported on May 7, 2000 and reserved for 500,000
case reserve increased to 700,000 on June 2, 2002.
Given the above information, draft tables that displayed the information required for the Note on Asbesto/Environment reserve of the 2003 AS.