Turkey Club
04-09-2006, 01:59 PM
Hi. I am a bit confused about what is disclosed in the Structured Settlement Notes in the Notes to the Financial Statement.
In the CAMAR notes, it says this note has two parts, a Part A and Part B. If the annuity bought is paid to and owned by the insurer, it is disclosed in Part A along with the PV of the annuity bought. If the annuity is paid out directly to the claimant, not owned by the insurer, it is listed in Part B, the liability is written off, and the price paid is recored as a paid loss.
According to All 10, the only time any disclosure occurs in this note is when ALL of the folllwing is true:
1) The annuity pays out directly to the claimant and is not owned by the insurer
2) The insurer is contingently liable for the claim (no release of liability was obtained)
3) The aggregate value of the annuities from a life insurer is more than 1% of the policyholder surplus
So which is true?
In the CAMAR notes, it says this note has two parts, a Part A and Part B. If the annuity bought is paid to and owned by the insurer, it is disclosed in Part A along with the PV of the annuity bought. If the annuity is paid out directly to the claimant, not owned by the insurer, it is listed in Part B, the liability is written off, and the price paid is recored as a paid loss.
According to All 10, the only time any disclosure occurs in this note is when ALL of the folllwing is true:
1) The annuity pays out directly to the claimant and is not owned by the insurer
2) The insurer is contingently liable for the claim (no release of liability was obtained)
3) The aggregate value of the annuities from a life insurer is more than 1% of the policyholder surplus
So which is true?