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Old 01-10-2019, 09:34 PM
joeleofu joeleofu is offline
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Default What is the name for this kind of reserves

I vaguely remember there is one kind of reserves for the expected claim liability on the unearned portion of insurance policies and that needs to be booked or somehow considered in the year end report. I am not talking unearned premium reserves for the possible refund of unearned premiums in the event of cancellation. I forgot whether it came from exam 6C or something. Does it come across anyone's memory? What is it called?
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Old 01-10-2019, 10:15 PM
Cloister Cloister is offline
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DD&R “free tail” reserves?
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Old 01-11-2019, 09:34 AM
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ShundayBloodyShunday ShundayBloodyShunday is offline
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In the US, it is the unearned premium reserve.

It is kept separate from other loss reserves for the reason of refunds as well as for those losses that are yet to be incurred.

With that said, Canada might also have different terminology which would be covered on the Exam 6C material (if anywhere).
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Old 01-11-2019, 09:52 AM
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manaknight14 manaknight14 is offline
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Could OP be referring to a premium deficiency reserve? If the refundable UEPR is not expected to be adequate to cover the claim liabilities of the unearned period, a PDR would be established for the excess.
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Old 01-11-2019, 10:52 AM
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Quote:
Originally Posted by manaknight14 View Post
Could OP be referring to a premium deficiency reserve? If the refundable UEPR is not expected to be adequate to cover the claim liabilities of the unearned period, a PDR would be established for the excess.
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