Why 20%
Where is the factor of 20% coming from in each of these different formulas (e.g. Authorized reinsurer Not slow paying). And is it just a coincidence that the threshold for Slow-paying is also 20%?
Thanks
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Where is the factor of 20% coming from in each of these different formulas (e.g. Authorized reinsurer Not slow paying). And is it just a coincidence that the threshold for Slow-paying is also 20%?
Thanks
Comments
20%, for either use, is a long-standing, codified convention. It is notionally reasonable for these purposes. We are not privy to how they came up with it.