Part 1 Summary Example of Liberty Mutual
Why is column (28) = (11) + (24) for prior year row xxx ? (the net paid and unpaid for columns 11 and 24 seems to be available for prior years)
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Why is column (28) = (11) + (24) for prior year row xxx ? (the net paid and unpaid for columns 11 and 24 seems to be available for prior years)
Comments
For all individual accident years, (11) gives the cumulative paid as of the statement date, whereas for the "Prior" year, it gives the amount paid in the statement calendar year on all accident years preceding the earliest individual accident year. So, whereas (28) provides a correct "incurred" for the individual years, it cannot do so for the Prior year, on account of (11,Prior) being defined as such. (Correct incurred has to be cumulative.)