SERVICE ANNOUNCES LOSS PAYMENT PATTERNS AND DISCOUNT FACTORS TO BE USED IN DISCOUNTING PROPERTY AND CASUALTY LOSS RESERVE DEDUCTIONS.
MAR. 9, 1990
Rev. Rul. 90-26; 1990-1 C.B. 124
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Areas/Tax Topics
- Index Termsdiscounted unpaid lossesinsurance company's reservesloss payment pattern
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 90-1970
- Tax Analysts Electronic Citation90 TNT 54-12
Citations: Rev. Rul. 90-26; 1990-1 C.B. 124
Rev. Rul. 90-26
For purposes of section 846 of the Internal Revenue Code, the following are the loss payment patterns and discount factors for calendar year 1990 for each property and casualty line of business to be used in discounting the deduction for loss reserves. Section 846 requires all property and casualty loss reserves (unpaid losses and unpaid loss adjustment expenses) for each line of business (as shown on the annual statement approved by the National Association of Insurance Commissioners (NAIC)) to be discounted for federal income tax purposes. The discount factors were determined by using an interest rate for 1990 of 8.37 percent, the interest rate determined under section 846(c).
DRAFTING INFORMATION
The principal author of this revenue ruling is Katherine A. Hossofsky of the Office of Assistant Chief Counsel (Financial Institutions & Products). For further information regarding this revenue ruling contact Katherine Ann Hossofsky on (202) 566-3458 (not a toll-free call).
COMPOSITE SCHEDULE P
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 27050900 78832067 34.3146
AY + 1 1984 42762165 70059326 61.0371
AY + 2 1983 46304723 62932278 73.5787
AY + 3 1982 46339283 56724398 81.6920
AY + 4 1981 44014354 50826873 86.5966
AY + 5 1980 41790830 46281924 90.2962
AY + 6 1979 38531049 41768331 92.2494
AY + 7 1978 33285121 35572301 93.5703
AY + 8 1977 29524057 31225532 94.5510
AY + 9 1976 26745914 28167858 94.9519
AY + 10 Pre 1976 184257188 188825255 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Composite Schedule P continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 34.3146 65.6854 54.2288 82.5584
AY + 1 26.7225 38.9629 30.9494 79.4331
AY + 2 12.5416 26.4213 20.4840 77.5283
AY + 3 8.1133 18.3080 13.7525 75.1173
AY + 4 4.9046 13.4034 9.7978 73.0994
AY + 5 3.6996 9.7038 6.7665 69.7311
AY + 6 1.9532 7.7506 5.2996 68.3769
AY + 7 1.3209 6.4297 4.3681 67.9368
AY + 8 0.9807 5.4490 3.7128 68.1378
AY + 9 0.4009 5.0481 3.6063 71.4380
AY + 10 0.4009 4.6472 3.4908 75.1156
AY + 11 0.4009 4.2464 3.3657 79.2599
AY + 12 0.4009 3.8455 3.2300 83.9959
AY + 13 0.4009 3.4446 3.0831 89.5048
AY + 14 0.4009 3.0437 2.9238 96.0606
AY + 15 3.0437 0.0000 0.0000 96.0606
AUTOMOBILE LIABILITY
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 10734519 31281287 34.3161
AY + 1 1984 18397279 28217053 65.1992
AY + 2 1983 20047428 24986353 80.2335
AY + 3 1982 19808529 22243403 89.0535
AY + 4 1981 18974882 20225872 93.8149
AY + 5 1980 17105852 17717213 96.5493
AY + 6 1979 16266022 16633374 97.7915
AY + 7 1978 14534843 14766868 98.4287
AY + 8 1977 12853464 13027563 98.6636
AY + 9 1976 11389407 11506437 98.9829
AY + 10 Pre 1976 91306371 91545592 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
(Automobile Liability continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 34.3161 65.6839 57.6062 87.7021
AY + 1 30.8830 34.8008 30.2783 87.0044
AY + 2 15.0344 19.7665 17.1616 86.8219
AY + 3 8.8200 10.9465 9.4164 86.0219
AY + 4 4.7614 6.1851 5.2479 84.8471
AY + 5 2.7344 3.4507 2.8405 82.8471
AY + 6 1.2421 2.2085 1.7852 80.8335
AY + 7 0.6373 1.5713 1.2712 80.9065
AY + 8 0.2349 1.3364 1.1332 84.7922
AY + 9 0.3193 1.0171 0.8956 88.0555
AY + 10 0.3193 0.6978 0.6382 91.4560
AY + 11 0.3193 0.3785 0.3592 94.9008
AY + 12 0.3193 0.0592 0.0568 96.0606
AY + 13 0.0592 0.0000 0.0000 96.0606
OTHER LIABILITY
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 824218 8957695 9.2012
AY + 1 1984 1752555 6901148 25.3951
AY + 2 1983 2493908 6222045 40.0818
AY + 3 1982 3181315 5762517 55.2070
AY + 4 1981 3429366 5180556 66.1969
AY + 5 1980 3548964 4724863 75.1125
AY + 6 1979 3339115 4162493 80.2191
AY + 7 1978 3050437 3610079 84.4978
AY + 8 1977 2812829 3245716 86.6628
AY + 9 1976 2702169 3081827 87.6807
AY + 10 Pre 1976 23480898 25101360 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Other Liability continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 9.2012 90.7988 67.2552 74.0706
AY + 1 16.1939 74.6049 56.0265 75.0977
AY + 2 14.6867 59.9182 45.4270 75.8150
AY + 3 15.1252 44.7930 33.4837 74.7521
AY + 4 10.9898 33.8031 24.8458 73.5014
AY + 5 8.9157 24.8875 17.6441 70.8954
AY + 6 5.1066 19.7809 13.8049 69.7890
AY + 7 4.2787 15.5022 10.5062 67.7723
AY + 8 2.1650 13.3372 9.1318 68.4684
AY + 9 1.0179 12.3193 8.8364 71.7285
AY + 10 1.0179 11.3013 8.5163 75.3570
AY + 11 1.0179 10.2834 8.1695 79.4435
AY + 12 1.1079 9.2655 7.7936 84.1145
AY + 13 1.1079 8.2475 7.3862 89.5571
AY + 14 1.1079 7.2296 6.9448 96.0606
AY + 15 7.2296 0.0000 0.0000 96.0606
WORKERS' COMPENSATION
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 3932938 15174769 25.9176
AY + 1 1984 7635807 14004437 54.5242
AY + 2 1983 8124465 11973169 67.8556
AY + 3 1982 8126215 10749254 75.5979
AY + 4 1981 8203632 10245226 80.0727
AY + 5 1980 7893190 9444281 83.5764
AY + 6 1979 7559441 8845526 85.4606
AY + 7 1978 6621807 7594942 87.1871
AY + 8 1977 5981586 6744498 88.6884
AY + 9 1976 5510811 6170361 89.3110
AY + 10 Pre 1976 46351166 48577936 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Workers' Compensation continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 25.9176 74.0824 58.4232 78.8625
AY + 1 28.6066 45.4758 33.5336 73.7393
AY + 2 13.3314 32.1444 22.4622 69.8790
AY + 3 7.7423 24.4021 16.2824 66.7257
AY + 4 4.4748 19.9273 12.9870 65.1719
AY + 5 3.5037 16.4236 10.4266 63.4857
AY + 6 1.8842 14.5394 9.3379 64.2246
AY + 7 1.7264 12.8129 8.3222 64.9515
AY + 8 1.5013 11.3116 7.4559 65.9134
AY + 9 0.6226 10.6890 7.4318 69.5274
AY + 10 0.6226 10.0664 7.4057 73.5684
AY + 11 0.6226 9.4438 7.3774 78.1190
AY + 12 0.6226 8.8211 7.3467 83.2852
AY + 13 0.6226 8.1985 7.3135 89.2048
AY + 14 0.6226 7.5759 7.2775 96.0606
AY + 15 7.5759 0.0000 0.0000 96.0606
MEDICAL MALPRACTICE
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 85689 2835465 3.0220
AY + 1 1984 312207 2404595 12.9838
AY + 2 1983 534322 2280478 23.4303
AY + 3 1982 745691 2095689 35.5821
AY + 4 1981 836834 1839826 45.4844
AY + 5 1980 846392 1574497 53.7563
AY + 6 1979 800223 1316417 60.7880
AY + 7 1978 745973 1109154 67.2560
AY + 8 1977 639578 883594 72.3837
AY + 9 1976 627818 835753 75.1200
AY + 10 Pre 1976 1959501 2323449 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Medical Malpractice continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 3.0220 96.9780 63.5019 65.4807
AY + 1 9.9617 87.0162 58.4467 67.1676
AY + 2 10.4465 76.5697 52.4638 68.5177
AY + 3 12.1519 64.4179 44.2048 68.6220
AY + 4 9.9023 54.5156 37.5964 68.9645
AY + 5 8.2719 46.2437 32.1321 69.4843
AY + 6 7.0316 39.2120 27.5016 70.1355
AY + 7 6.4681 32.7440 23.0701 70.4561
AY + 8 5.1277 27.6163 19.6631 71.2012
AY + 9 2.7363 24.8800 18.4604 74.1978
AY + 10 2.7363 22.1436 17.1570 77.4804
AY + 11 2.7363 19.4073 15.7444 81.1265
AY + 12 2.7363 16.6709 14.2137 85.2604
AY + 13 2.7363 13.9346 12.5548 90.0983
AY + 14 2.7363 11.1982 10.7571 96.0606
AY + 15 11.1982 0.0000 0.0000 96.0606
FARMOWNERS MULTIPLE PERIL, HOMEOWNERS MULTIPLE PERIL, COMMERCIAL
MULTIPLE PERIL, OCEAN MARINE, AIRCRAFT (ALL PERILS) AND BOILER
AND MACHINERY
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 11473534 20582849 55.7432
AY + 1 1984 14664316 18532075 79.1294
AY + 2 1983 15104598 17470233 86.4591
AY + 3 1982 14477532 15873533 91.2055
AY + 4 1981 12569638 13335391 94.2577
AY + 5 1980 12396429 12821063 96.6880
AY + 6 1979 10566246 10810520 97.7404
AY + 7 1978 8332059 8491257 98.1252
AY + 8 1977 7236609 7324158 98.8047
AY + 9 1976 6515706 6573477 99.1212
AY + 10 Pre 1976 21159251 21276916 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
(Farmowners Multiple Peril continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 55.7432 44.2568 38.6581 87.3496
AY + 1 23.3862 20.8706 17.5486 84.0827
AY + 2 7.3297 13.5409 11.3871 84.0941
AY + 3 4.7464 8.7945 7.3992 84.1339
AY + 4 3.0523 5.7423 4.8411 84.3056
AY + 5 2.4303 3.3120 2.7163 82.0146
AY + 6 1.0524 2.2596 1.8481 81.7897
AY + 7 0.3847 1.8748 1.6023 85.4617
AY + 8 0.6795 1.1953 1.0290 86.0856
AY + 9 0.3165 0.8788 0.7857 89.3980
AY + 10 0.3165 0.5624 0.5220 92.8170
AY + 11 0.3165 0.2459 0.2362 96.0606
AY + 12 0.2459 0.0000 0.0000 96.0606
FIRE
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 1182445 2142829 55.1815
AY + 1 1984 687222 944426 72.7661
AY + 2 Pre 1984 196764 462600 NA
AY + 3 NA NA NA NA
(Fire continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 55.1815 44.8185 41.7295 93.1078
AY + 1 32.6127 12.2058 11.2722 92.3510
AY + 2 6.1029 6.1029 5.8625 96.0606
AY + 3 6.1029 0.0000 0.0000 96.0606
ALLIED LINES
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 657907 1076282 61.1278
AY + 1 1984 297197 388220 76.5538
AY + 2 Pre 1984 77676 174175 NA
AY + 3 NA NA NA NA
(Allied Lines continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 61.1278 38.8722 36.3527 93.5185
AY + 1 29.7582 9.1141 8.4169 92.3510
AY + 2 4.5570 4.5570 4.3775 96.0606
AY + 3 4.5570 0.0000 0.0000 96.0606
INLAND MARINE
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 1101567 1913177 57.5779
AY + 1 1984 562321 731477 76.8747
AY + 2 Pre 1984 140515 321225 NA
AY + 3 NA NA NA NA
(Inland Marine continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 57.5779 42.4221 39.6873 93.5533
AY + 1 32.6119 9.8102 9.0598 92.3510
AY + 2 4.9051 4.9051 4.7119 96.0606
AY + 3 4.9051 0.0000 0.0000 96.0606
MISCELLANEOUS CASUALTY
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 185443 216664 85.5901
AY + 1 1984 12581 14861 84.6578
AY + 2 Pre 1984 1729 4100 NA
AY + 3 NA NA NA NA
(Miscellaneous Casualty continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 85.5901 14.4099 13.6025 94.3972
AY + 1 12.1991 2.2108 2.0417 92.3510
AY + 2 1.1054 1.1054 1.0618 96.0606
AY + 3 1.1054 0.0000 0.0000 96.0606
EARTHQUAKE
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 3852 13974 27.5655
AY + 1 1984 1654 3010 54.9502
AY + 2 Pre 1984 722 1757 NA
AY + 3 NA NA NA NA
(Earthquake continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 27.5655 72.4345 66.0430 91.1762
AY + 1 39.8029 32.6316 30.1356 92.3510
AY + 2 16.3158 16.3158 15.6731 96.0606
AY + 3 16.3158 0.0000 0.0000 96.0606
AUTO PHYSICAL DAMAGE
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 13876758 16695051 83.1190
AY + 1 1984 1743502 1864945 93.4881
AY + 2 Pre 1984 -128871 -44115 NA
AY + 3 NA NA NA NA
(Auto Physical Damage continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 83.1190 16.8810 16.0968 95.3546
AY + 1 15.7817 1.0993 1.0152 92.3510
AY + 2 0.5496 0.5496 0.5280 96.0606
AY + 3 0.5496 0.0000 0.0000 96.0606
FIDELITY
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 63993 281102 22.7650
AY + 1 1984 108652 212771 51.0652
AY + 2 Pre 1984 76630 196869 NA
AY + 3 NA NA NA NA
(Fidelity continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 22.7650 77.2350 70.0945 90.7549
AY + 1 39.4402 37.7947 34.9038 92.3510
AY + 2 18.8974 18.8974 18.1529 96.0606
AY + 3 18.8974 0.0000 0.0000 96.0606
SURETY
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 322557 869869 37.0811
AY + 1 1984 221719 418289 53.0062
AY + 2 Pre 1984 29380 252418 NA
AY + 3 NA NA NA NA
(Surety continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 37.0811 62.9189 57.2344 90.9654
AY + 1 33.3509 29.5680 27.3063 92.3510
AY + 2 14.7840 14.7840 14.2016 96.0606
AY + 3 14.7840 0.0000 0.0000 96.0606
GLASS
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 5330 8021 66.4506
AY + 1 1984 1482 1703 87.0229
AY + 2 Pre 1984 145 518 NA
AY + 3 NA NA NA NA
(Glass continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 66.4506 33.5494 31.7557 94.6536
AY + 1 29.1957 4.3537 4.0207 92.3510
AY + 2 2.1769 2.1769 2.0911 96.0606
AY + 3 2.1769 0.0000 0.0000 96.0606
BURGLARY AND THEFT
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 16947 35142 48.2243
AY + 1 1984 10304 13001 79.2554
AY + 2 Pre 1984 3182 8093 NA
AY + 3 NA NA NA NA
(Burglary and Theft continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 48.2243 51.7757 48.5715 93.8114
AY + 1 41.0350 10.7406 9.9191 92.3510
AY + 2 5.3703 5.3703 5.1588 96.0606
AY + 3 5.3703 0.0000 0.0000 96.0606
CREDIT
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 54286 218630 24.8301
AY + 1 1984 52253 126369 41.3495
AY + 2 Pre 1984 9995 43661 NA
AY + 3 NA NA NA NA
(Credit continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 24.8301 75.1699 67.4286 89.7015
AY + 1 31.0824 44.0875 40.7153 92.3510
AY + 2 22.0438 22.0438 21.1754 96.0606
AY + 3 22.0438 0.0000 0.0000 96.0606
CREDIT ACCIDENT AND HEALTH (Group and Individual)
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 50544 93229 54.2149
AY + 1 1984 26637 42512 62.6576
AY + 2 Pre 1984 8295 18171 NA
AY + 3 NA NA NA NA
(Credit Accident and Health continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 54.2149 45.7851 42.1277 92.0118
AY + 1 28.6879 17.0973 15.7895 92.3510
AY + 2 8.5486 8.5486 8.2119 96.0606
AY + 3 8.5486 0.0000 0.0000 96.0606
_____________________________________________________________________
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Areas/Tax Topics
- Index Termsdiscounted unpaid lossesinsurance company's reservesloss payment pattern
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 90-1970
- Tax Analysts Electronic Citation90 TNT 54-12
