Question 21 part a

marodriguez

Hello,
It's unclear where the Unpaid Losses=16,500 and Unpaid LAE=3680 should come from in general. I see that in this problem them come from Schedule P part 1...but in Odimirok's example these values are pulled from the Balance sheet Col 1, line 1 and Col 1, Line 3. Do these match exactly with the net amounts in schedule P? Would the balance sheet for this same company say 16500 and 3680 in lines 1 and 3?

Thank you,
-Marco

Staff - AC

You need to keep track of the discounts. Schedule P displays with and without discount. Balance sheet is only one way.

Discounting is a convoluted issue. Here is a thread where we get a little into it:

https://battleacts6us.ca/vanillaforum6us/discussion/comment/2501#Comment_2501