Webel.TRIA-2019 Auto Premium Inclusion
For the BattleActs examples, the auto is not inlcuded in the Direct EP used to calculate the insurer's deductible. Is this because it is assumed the auto premium is strictly personal auto? If it was commercial auto then would the Direct EP be included in the Total Direct EP used to find the deductible?
Comments
You're right, the examples should have read "personal auto." Commercial auto would have been included.
I inserted a note in the wiki to clarify. Thx!
Hi, I was looking in the source text, and the footnote on page 3 states "The TRIA statutory definition specifically excludes... (viii) commercial automobile insurance." Would this mean that you would actually exclude commercial auto Direct EP in the deductible calculation? Or is this exclusion referring to something different?
Sorry about my earlier error. Yes, it seems commercial auto is excluded.
Also, this is only for Direct EP so no assumed EP would be included here then?
Correct.
On example 4, the insurer's losses are less than $5m so wouldn't that mean the criteria for loss-sharing hasn't been met?
And related to that, I assume the $5m threshold only includes commercial lines? i.e. the insurance company can't have $10m of personal lines and use that to qualify for loss sharing on only $2m of commercial lines.
That criterion is that industry losses should be gt 5M, not insurer's losses.
Yes, the 5M should be on commercial lines.
oh so in practice the $5m threshold required for certification isn't that relevant for TRIA, since it needs to hit $200m anyway. thanks!
Correct. Sure, good luck.