To recognize the uncertainty in establishing these best estimates, to allow for possible deterioration in experience and to provide greater comfort that the actuarial liabilities are adequate to pay future benefits, actuaries are required to include margins in some assumptions. A range of allowable margins is prescribed by the Canadian Institute of Actuaries relating to claim development, reinsurance recoveries and investment income variables. Below, is a comparison between policy liabilities as recorded in the Company's financial statements and policy liabilities computed in accordance with accepted actuarial practice. Management believes that policy liabilities computed in accordance with accepted actuarial practice provide a reasonable measurement of the fair value of such liabilities. The estimated fair values of debt securities, common and preferred shares are based on quoted market values.
Equities have no specific maturities.
This trust balance is not reflected in these financial statements but is considered in determining statutory reserve requirements. The provision for unpaid claims and adjustment expenses is net of amounts relating to policies for years prior to 1995 that are payable by the Law Society. These funds are held in trust by the Errors and Omissions Fund of the Society for future insurance purposes. The Company is committed to monthly lease payments under an agreement in effect until January 31, 2002. Certain amounts in the comparative financial statements have been reclassified to conform to the presentation used in the 1999 financial statements.