2014.Fall 15
Why has the reinsurance recoverable on paid loss & LAE for greater than 90 days past due (250+50) included in the net admitted asset calculation ? Shouldn't more than 90 days be non-admitted ?
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Why has the reinsurance recoverable on paid loss & LAE for greater than 90 days past due (250+50) included in the net admitted asset calculation ? Shouldn't more than 90 days be non-admitted ?
Comments
No, it is included in admitted. It is also used in deriving provision for reinsurance, a liability.
In the examiner's report in the admitted assets calculation, the "greater than 90 days past due" reinsurance recoverables are included to get to the 61,900 for admitted assets. Could you take a look at this part of the examiner's report and explain why the calculation for reinsurance recoverables is 3700+150+250+50, and not just 3700+150?
250 and 50 are also paid loss recoverable.
From the wiki..."The solution is basically straightforward but there are lot of little details you have to remember:
agents' balances > 90 days past due are not admitted"
How is this included if it is not an admitted asset?
250 and 50 are not agents' balances. Agent's balance is a balance of premium.