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.
I noticed Funds Held are a liability item here on problem 2014 #15. Do all payable/collateral items go into liabilities if they were given? (i.e. Letters of Credit, Ceded balances payable, & Other amounts due to reinsurers)
"Funds held by company under reinsurance treaties" and "ceded reinsurance premiums payable (net of ceding commissions)" are two actual liability items on the balance sheet. "Letters of Credit" may be something that is included in the first one.