Sch. F, Part 2
I think the info shown in this exhibit only relates to the premium, not the losses, commissions, & collateral. But portfolio reinsurance is accounted for as retroactive reinsurance, correct?
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I think the info shown in this exhibit only relates to the premium, not the losses, commissions, & collateral. But portfolio reinsurance is accounted for as retroactive reinsurance, correct?
Comments
Yes, just premiums. I changed it thanks.
And yes, portfolio reinsurance is accounted for as retroactive insurance according to SSAP-62R, paragraph 30:
Can you dumb down what's being said here:
30. Portfolio reinsurance is the transfer of an insurer’s entire liability for in force policies or outstanding losses, or both, of a segment of the insurer’s business. Loss portfolio transactions are to be accounted for as retroactive reinsurance.
What's the difference between transferring "an insurer's entire liability for in-force policies and transferring the outstanding losses? I think this also ties in with mini quiz 1 items 8 and 9
Policies-in-force are those whose terms have not yet expired. Outstanding losses are those yet to be paid on claims from policies that may be in-force or expired. In the former, you transfer outstanding losses only on policies-in-force. When the objective is to discontinue a line, you may transfer either of these, or both.