Source: http://www.maine.gov/pfr/insurance/company/exam_reports/2008/2008MedicalMutualReport.htm
Timestamp: 2013-05-21 02:22:20
Document Index: 29866321

Matched Legal Cases: ['§221', '§221', '§3411', '§731', '§412', 'art 1', 'art 3', 'art 2', 'art 1', 'art 1']

> Medical Mutual Insurance Company
I have hereunto set my hand and affixed the official seal of this Office at the City of Gardiner this fourteenth day of April, 2010
I hereby certify that the attached report of examination dated December 30, 2009 describes the condition and affairs of the Medical Mutual Insurance Company of Maine as of December 31, 2008, and has been filed in the Bureau of Insurance as a public document.
________________________ Stuart E. Turney, CPA, AFE
Dated this fourteenth day of April, 2010
PENSION AND OTHER BENEFITS PLANS TERRITORY AND PLAN OF OPERATION GROWTH OF COMPANY LOSS EXPERIENCE REINSURANCE ACCOUNTS AND RECORDS STATUTORY DEPOSITS
STATEMENT OF ADMITTED ASSETS, LIABILITIES AND SURPLUS STATEMENT OF OPERATIONS STATEMENT OF CAPITAL AND SURPLUS
APPENDIX A--STATEMENT OF ACTUARIAL OPINION
RE: Medical Mutual Insurance Company of Maine Statutory Examination of the Period Ended December 31, 2008
Pursuant to your instructions and in accordance with the provision of 24-A M.R.S.A. §221, an examination, as of December 31, 2008, has been made on the condition and financial affairs of
The examination was performed at the home office of Medical Mutual Insurance Company of Maine in Portland, Maine. The following report is respectfully submitted.
The Maine Bureau of Insurance (hereinafter, “BOI”) has performed a full scope single-state examination of Medical Mutual Insurance Company (hereafter, “Company”). The examination covered the period January 1, 2006 through December 31, 2008. The last examination performed by the BOI was completed as of December 31, 2005.
The examination was conducted in accordance with the National Association of Insurance Commissioners’ (hereinafter, “NAIC”) 2009 Financial Condition Examiners Handbook (hereinafter, “FCEH”). The FCEH requires that the examination be planned and performed in a manner that evaluates the financial condition of the Company and identifies prospective risks of the Company. Through the examination process information about the Company including corporate governance is obtained. Inherent risks within the Company are identified and assessed. System controls and control procedures used to mitigate those risks are identified and evaluated. The examination also includes assessment of accounting principles used and significant estimates made by management, as well as evaluation of the overall financial statement presentation, management’s compliance with Statutory Accounting Principles (hereinafter, “SAP”) and annual statement instructions.
All accounts and activities of the Company were considered in accordance with the risk-focused examination process.
In the prior examination report as of December 31, 2005, the following recommendations were made:
Contingent liabilities should be reported in Note 14 of the Annual Statement in accordance with Statement of Statutory Accounting Principle (hereinafter, “SSAP”) No. 5.
The Company is reporting contingent liabilities in Note 14 of the Annual Statement pursuant to SSAP No. 5.
Deferred taxes should be calculated and reported in the Note 9 of the Annual Statement in accordance with SSAP No. 10.
The Company is calculating and reporting deferred taxes in Note 9 of the Annual Statement pursuant to SSAP 10.
The Company appears to be substantially in compliance with 24-A M.R.S.A., and the Company’s by-laws except for the findings noted below.
The Company’s engagement letter does not meet the criteria for such agreements pursuant to 24-A M.R.S.A. §221 (1) as set forth in the FCEH. Specifically, the engagement letter for the 2008 audit contained the following indemnification clause: “The Company hereby indemnifies [unnamed Certified Public Accountant] and its principals and employees and holds them harmless for all claims, liabilities, losses and costs arising in circumstances where there has been a know misrepresentation by members of the Company’s management, regardless of whether such person was acting in the Company’s interest. This indemnification will survive termination of this letter.”
An Engagement Letter, related to future audits, that complies with the FCEH, should be drafted and executed. Reference page 2-80 of the FCEH.
The subsequent events period for the examination was December 31, 2008 through the date of this report of examination incorporated herein and there were no subsequent events noted.
The Company was organized under the general laws of the State of Maine on March 20, 1978 and was licensed to transact business on September 1, 1978 by the superintendent of insurance. During 1992, the Company became licensed to write medical malpractice insurance in New Hampshire and Vermont, and began to actively write business in New Hampshire during 1992 and in Vermont in 1995.
In 1997, the Company formed MMIC Services Company, LLC (hereinafter, “MMIC”), a wholly owned subsidiary to provide accounting and data processing services to the Company. MMIC formed a wholly owned subsidiary, Medical Provider Management Company (hereinafter, “MPMC”) in 1997 to provide managerial, planning, financial, and other services to health care practices in New England.
In 2002, MMIC formed a wholly owned subsidiary, Specialty Insurance Placement Services, LLC (hereinafter, “SIPS”) to provide placement of insurance products other than medical malpractice for the Company’s insureds.
Operations of MPMC were discontinued on June 30, 2003. Assets of MPMC were distributed to MMIC and the Company. In 2004, the Company’s board of directors voted to discontinue operations of Technology Services Division of MMIC effective December 31, 2005. The Company’s investment in subsidiary companies at December 31, 2008, reflects its investment in SIPS. The Company’s subsidiary ownership structure follows:
A $10 million surplus note was issued on March 1, 2006 in exchange for cash. The term of the note is 30 years with a final maturity date of March 15, 2036. The rate is fixed at 8.82% for the first five years. Thereafter, the rate is variable based on the 3 Month LIBOR rate plus 375 basis points. After the fifth year the Company may elect to redeem any principle amount, in multiples of $1,000, on each interest payment due date.
Dividends are paid to policyholders as declared by the Company’s board of directors. The Company’s board of directors declared dividends to policyholders of $3,857,596, $3,959,567 and $0 in 2008, 2007 and 2006, respectively. Unpaid dividends (see balance sheet account “Dividends (policyholders)”) at December 31, 2008, 2007 and 2006 were $1,026,434, $1,096,833 and $0, respectively.
The minutes of the board of directors and board committees were reviewed for compliance with Company by-laws and to assess corporate governance. The review indicated that the Company appears to be conducting its affairs in accordance with the statutes of the State of Maine and in accordance with its charter and by-laws.
The by-laws state that the board of directors shall consist of not less than seven persons and no more than twenty-one persons and that the board of directors is authorized to increase or decrease the number of directors within this range. At least 60% of the directors must be members or authorized representatives of the members of the corporation. Title 24-A M.R.S.A §3411 (1) requires that the affairs of every domestic insurer shall be managed by a board of directors consisting of not less than 7 directors or more than 21 directors. The Company was found to be in compliance with this statute.
The Company’s board of directors elected by policy holders and serving at December 31, 2008 consisted of the following individuals:
Scott B. Bullock
Bruce L. Churchill, MD
Mark S. Cooper, MD
William F. D’Angelo, MD
William L. Medd, MD
Domenic J. Restuccia
John P. Sauter, MD
Terrance J. Sheehan, MD
James M. Totten, CPA
The board of directors has an audit committee and a compensation committee. The members of the committees were as follows:
James Totten, CPA
Officers elected by the board of directors and serving at December 31, 2008 consisted of the following individuals:
William L. Medd, MD, Chairman
Terrance J. Sheehan, MD, President
Mark S. Cooper MD, Treasurer
Cynthia A. DeSoi, MD, Secretary
Dominic J. Restuccia, EVP/CFO
Michael L. McCall, SVP Operations
John Doyle, VP Marketing/Communications
The Company is indemnified up to $1,000,000, an amount in compliance with the NAIC, by a financial institution bond issued by an insurance company licensed by the State of Maine. The Company also protects itself from subject perils through the following insurance coverage’s:
The Company requires each director and officer to complete a conflict of interest statement annually to disclose any material interest or affiliation which is likely to be in conflict with his/her official duties and responsibilities with the Company. The conflict of interest statements were reviewed and are in compliance with Company policy.
The Company sponsors a 401(k) plan covering substantially all employees of the Company and affiliated companies. The plan has two components, employee funding and employer discretionary contributions. The Company has no legal obligation to pay benefits under the employer discretionary part of the plan.
The Company sponsors a non-qualified supplemental pension plan for employees who have earnings in excess of federally allowed limits for contributions to the defined contribution plan. Participants in the plan are general creditors of the Company.
The Company sponsors a non-qualified deferred compensation plan for employees and directors. The plan allows participants to defer receipt of compensation until a future date. Participants of the plan are general creditors of the Company.
The Company was formed to transact medical professional liability insurance for health care providers including health care facilities and institutions, physicians licensed to practice medicine and other medical personnel, and to transact liability insurance generally for such persons, facilities and institutions. The Company is licensed and writes business in Maine, New Hampshire and Vermont.
The following table presents certain comparable data that the Company reported for the period under examination:
Risk-Based Capital Analysis
$79,763,921 $82,727,305 $72,317,799 Authorized Control Level
$7,871,912 $7,040,076 $7,111,148 Risk-Based Capital Percent
$40,630,161
$42,243,562
$43,489,354
$79,763,921
$82,727,305
$72,317,799
The Bureau of Insurance contracted with Pinnacle Actuarial Resources, Inc. (hereinafter, “PAR”) to perform an actuarial analysis of the Company’s loss and loss adjustment expense reserves. Based on the PAR actuarial opinion, the Company’s estimates for gross and net unpaid loss and loss adjustment expenses appear to be reasonably stated in all material aspects. (See Appendix A for the Statement of Actuarial Opinion)
Examiners reviewed all reinsurance contracts in effect for the period under examination and determined that all reinsurers are authorized by the State of Maine pursuant to 24-A M.R.S.A. §731-B. The table below describes the Company’s reinsurance agreements in place at December 31, 2008:
Professional Liability, Primary Liability, and Umbrella Excess Liability
Reinsured Amount
$750,000 per claim
$1,250,000 per claim
Up to $10,000,000 per insured
Clash (abates the risk of a malpractice claim involving multiple insureds)
$1,500,000 per loss event
$3,500,000 per loss event
$1,000,000 per loss event
Maximum all loss events $4,000,000
Managed Health Care Liability and Business Errors and Omissions Liability
First & Only Layer
$100,000 per claim or insured
$900,000 per claim or insured
The Bureau of Insurance contracted with PAR to perform an analysis of the reinsurance treaties. PAR concluded that the Company’s reinsurance treaties appropriately transfer risk.
The NAIC’s “Exhibit C – Evaluation of Controls in Information Systems (IS)” was used to evaluate the Company’s information system controls. Included in the scope of this review were management and organization controls, logical and physical security, changes to applications, contingency planning, operations and network and internet controls. Interviews with Company staff were conducted to gather supplemental information and corroborate the Company’s responses.
The financial reporting activities are conducted at the Company’s office located at One City Center in Portland Maine.
The Company has on deposit with the State of Maine, a US Treasury Note, thereby, satisfying the requirements of 24-A M.R.S.A. §412.
$ 167,312,364
$ 150,653,959
$ 144,512,148
16,060,431
24,613,844
28,407,750
14,951,043
9,393,524
Receivables for Securities
1,746,573
Premiums, uncollected and agents’ balances in course of collection
Deferred Premiums, booked but not yet due
16,066,495
16,246,299
15,471,096
4,107,557
Current Federal and Foreign Income Tax Recoverable and interest thereon
2,909,948
3,301,768
2,943,393
Receivables from Parent, Subsidiaries and Affiliates
$ 209,827,775
$ 216,264,303
$ 203,379,280
$ 72,167,772
$ 68,441,838
$ 67,819,108
22,752,451
24,780,036
27,330,759
Taxes, Licenses and Fees (excl. fed and for income taxes)
26,023,890
27,156,412
25,919,341
Dividends (policyholders)
5,281,147
Amounts Withheld or Retained on account of others
2,116,072
$ 130,063,854
$ 133,536,998
$ 131,061,481
69,763,921
72,727,305
62,317,799
79,763,921
82,727,305
72,317,799
$ 41,762,683
$ 41,006,491
$ 42,996,084
20,956,484
16,730,523
14,650,751
6,832,248
4,847,289
13,894,267
9,942,400
9,348,038
9,569,932
37,731,563
30,926,660
38,129,923
4,031,120
10,079,831
4,866,161
7,100,003
7,667,482
6,576,282
Net Realized Capital Gains/(Losses) less tax
(1,327,705)
7,926,807
6,589,302
Aggregate Write-Ins for Misc. Income
Net Income before Dividends to Policyholders
12,044,853
16,492,801
11,533,983
3,857,596
3,959,567
Net Income after Dividends to Policyholders
12,533,234
2,017,913
4,585,791
$ 6,169,344
$ 7,947,443
$ 10,248,139
Surplus as regards policyholders, December 31 prior year
$ 82,727,305
$ 72,317,799
$ 49,536,824
6,169,344
7,947,443
10,248,139
Change in net unrealized capital gains/(losses) less tax
(9,188,145)
1,277,301
3,090,709
(391,820)
(1,127,157)
Change in surplus note
10,000,000 Aggregate write-ins for gains/(losses) in surplus
Change in surplus as regards policyholders
(2,963,384)
10,409,506
22,780,975
Surplus as regards policyholders, December 31, current year
$ 79,763,921
The Company’s bond portfolio is carried at amounts prescribed by the NAIC. Bonds with an NAIC designation of 2 or less are carried at amortized cost and bonds with a designation of 3 or greater are carried at lower of amortized cost or fair value.
The cost, par value, market value and amortized value of bonds at December 31, 2008 by security type are as follows:
$ 14,025,109
$ 15,941,095
$ 15,212,563
$ 14,027,009
10,139,185
10,340,720
10,067,025
64,062,357
62,211,719
64,880,886
63,773,161
78,215,434
77,998,217
74,602,316
77,814,282
$ 168,071,848
$ 167,276,031
$ 166,643,989
Gross recorded unrealized gains and unrealized losses at December 31, 2008 by security type are as follows:
$ 1,202,896
1,576,865
(4,494,418)
$ 4,378,268
$ (5,046,643)
The cost, par value, market value and amortized value of bonds at December 31, 2008 by NAIC quality distribution are as follows:
$ 159,649,318
$ 159,066,031
$ 159,396,003
$ 158,929,261
8,422,530
7,247,986
8,383,103
NAIC Class 3 - 6
The cost, par value, market value and amortized statement value of bonds at December 31, 2008 by maturity distribution are shown below. The maturity dates have not been adjusted for possible calls or prepayments.
$ 6,174,125
$ 5,937,080
$ 10,903,268
28,991,329
28,554,368
28,307,004
43,933,144
53,892,350
52,049,443
53,685,770
63,682,545
Over 10 Years through 20 Years
22,755,166
24,529,028
23,107,039
20,294,436
56,258,878
56,143,192
55,607,096
28,498,971
PAR was retained by the Maine Bureau of Insurance to review the reasonableness of unpaid loss and loss adjustment expense reserves as of December 31, 2008. PAR found that “In aggregate, the Company’s stated reserves are within a reasonable range of reserve estimates; hence the stated reserve amounts make a reasonable provision for the liabilities associated with the specific reserves.” Below is a summarization of PAR’s range estimates for total gross and total net loss and loss adjustment expense reserves.
Gross Loss Reserve
$ 92,348,000
Gross LAE Reserve
$ 23,361,000
$ 115,709,000
$ 95,397,000
$ 113,624,000
$ 72,168,000
Net LAE Reserve
$ 22,752,000
Total Net Reserves
$ 94,920,000
$ 77,521,000
$ 91,432,000
$ 105,343,000
Michael R. Nadeau, CPA, CFE, CISA, AES, being duly sworn according to law, deposes and says that in accordance with the authority vested in him by Mila Kofman, Superintendent of Insurance, pursuant to the Insurance Laws of the State of Maine, he has performed an examination on the conditions and affairs of
at One City Center, Portland, Maine office as of December 31, 2008, and that the foregoing report of examination, subscribed to by him, is true to the best of his knowledge and belief. The following examiner from the Bureau of Insurance assisted:
Debra L. Blaisdell __________________________________
this fourteenth day of April, 2010
I, John E. Wade, am a Consulting Actuary with the firm of Pinnacle Actuarial Resources, Inc. I am a member in good standing and an Associate of the Casualty Actuarial Society. I am also a member in good standing of the American Academy of Actuaries and meet its qualification standards for rendering this Statement of Actuarial Opinion. On July 30, 2009 the Maine Bureau of Insurance (MBoI) requested me to render this opinion on the reserves of the Medica1 Mutual Insurance Company of Maine (the company).
I have examined the reserves listed in Exhibit A, as shown in the Annual Statement of the Company as prepared for filing with state regulatory officials, as of December 31, 2008. The items in this Scope paragraph on which I am expressing an opinion, reflect the Loss Reserve Disclosure items 8 through 13 in Exhibit B.
In forming my opinion on the loss and loss adjustment expense reserves, I relied upon data prepared by responsible officers or employees of the company. In this regard, I relied primarily upon Mr. Kevin Atinsky, Actuary of Medical Mutual Insurance Company of Maine. I began my analysis after being notified by Mr. Michael Nadeau, Examiner In-Charge for the Maine Bureau of Insurance, that the underlying data was credible. I evaluated that data for reasonableness and consistency. I also reconciled that data to Schedule P - Part 1 of the company’s current Annual Statement. In other respects, my examination included the use of such actuarial assumptions and methods used and such tests of the calculations as I considered necessary.
My review was limited to items in Exhibit A and did not include an analysis of any other balance sheet items. I have not examined the assets of the company and I have formed no opinion as to the validity or value of these assets. My opinion on the reserves is based upon the assumption that all reserves are backed by valid assets, which have suitably scheduled maturities and/or adequate liquidity to meet the cash flow requirements.
Opinion This is a “Reasonable Opinion”. In my opinion, the amounts carried in Exhibit A on account of the items identified:
meet the requirements of the insurance laws of Maine;
are consistent with reserves computed in accordance with accepted loss reserving standards and principles;
make a reasonable provision in the aggregate for all unpaid loss and loss expense obligations of the company under the terms of its contracts and agreements; and
make a reasonable provision for the unearned premium reserves for the extended losses and expenses of the company under the terms of its contracts and agreements.
In the aggregate, the Company’s stated reserves are within a reasonable range of my independent reserve estimates; hence the stated reserve amounts make a reasonable provision for the liabilities associated with the specified reserves.
This opinion applies to loss and loss adjustment expense reserves combined. The Company writes no policies or contracts related to single or fixed premium policies with coverage periods of thirteen months or greater which are non-cancelable and not subject to premium increase.
I believe that the company has a significant risk of material adverse deviation as of December 31, 2008. The materiality threshold I used for this determination was 10% of 2008 policyholder surplus, or approximately $8,000,000.
I chose this materiality standard after a review of the company’s historical financial performance and in consideration of the following facts:
The company’s capital is more than five times the “Company Action Level” standard under the NAIC’s Risk-Based Capital formula
10% of policyholder surplus is an often used standard by regulators and appointed actuaries
10% of carried net loss reserves is greater than 10% of policyholder surplus and it is my preference to use the lower figure among these two commonly-used measures
The Company has booked reserves within a reasonable range of actuarial estimates. The primary risk factors facing the Company are concentration of writings in medical professional liability with extended reporting and settlement patterns, the volatility and size of potential liabilities, and the limited spread of risk. The unique nature and variability of these types of claim pose the potential for material adverse deviation. The absence of other risk factors from this listing does not imply that additional factors will not be identified in the future as having been a significant influence on the Company’s reserves. Therefore, there is a risk of material adverse deviation.
b. Other Disclosures in Exhibit B
The company does not reduce its loss reserves for anticipated salvage and subrogation recoverable as of December 31, 2008. The company does not discount its loss and loss adjustment expense reserves. I have reviewed the company’s exposure to asbestos and environmental claims. In my opinion, there is a remote chance of material liability since reported claim activity levels are minimal and the company writes only medical professional liability coverage. The company does not participate in any pools. Reserve exposure with respect to pools is considered to be immaterial.
The Company writes extended loss and expense contracts, which provide insureds with automatic reporting endorsement coverage in the event of death, disability or retirement. The Company accrues this liability as an unearned premium reserve.
The company is not required to record a premium deficiency reserve.
Based on discussions with company management and its description of the company’s ceded (and/or assumed) reinsurance, I am not aware of any reinsurance contract (having a material effect on the loss or loss expense reserves) that either has been or should have been accounted for as retroactive reinsurance or financial reinsurance.
My opinion on the loss and loss adjustment expense reserves net of ceded reinsurance assumes that all ceded reinsurance is valid and collectible. The company has represented to me that it knows of no uncollectible reinsurance cessions (other than those disclosed in Note #22 to the Financial Statements). I have reviewed the Company’s ceded reinsurance balances as shown in Schedule F - Part 3 and have found that 100.0% of the total $22,293,000 reinsurance recoverables are with authorized mandatory pools or companies rated A (Superior) or higher by A.M. Best.
Therefore, reinsurance collectability does not appear to be a material issue. I have not anticipated any contingent liabilities that could arise if the reinsurers do not meet their obligations to the company as reflected in the data and other information provided me.
I have reviewed the Part 2 - Property and Casualty Interrogatory #9 regarding the risk transfer elements of its reinsurance contracts. I have reviewed the Reinsurance Attestation Supplement to the Annual Statement and discussed the company’s reinsurance prograrn with management. I have performed an independent evaluation of the risk transfer elements of individual contracts. I rely on management’s representations that the credit for reinsurance is consistent with SSAP No. 62 - Property and Casualty Reinsurance.
I reviewed the results of the three NAIC IRIS Tests, which are relevant to loss reserves, as calculated by the company’s management. These tests are listed as follows:
One-Year Reserve Development to Policyholders’ Surplus
Two-Year Reserve Development to Policyholders’ Surplus
Estimated Current Reserve Deficiency to Policyholders’ Surplus
No exceptional values resulted for any of those three IRIS tests.
e. Methods and Assumptions
This is my first review of MMICM’s reserves. I make no comment regarding the actuarial assumptions and methods previously employed.
Range of Reserves
I have established the following reasonable range of reserves around my actuarial central estimate.
Actuarial Central Est.
In evaluating whether the reserves make a reasonable provision for unpaid losses and loss adjustment expense, it is necessary to project future loss and loss adjustment expense payments. It is certain that actual future losses and loss adjustment expenses will not develop exactly as projected and may, in fact, vary significantly from the projections. Further, my projections make no provision for extraordinary future emergence of new classes of losses or types of losses not sufficiently represented in the company’s historical data base or which are not yet quantifiable.
An actuarial report and any underlying actuarial work papers supporting the findings expressed in this Statement of Actuarial Opinion have been provided to the Maine Bureau of Insurance. We will retain a copy of the report and work papers for a period of seven years in our administrative offices.
This statement of opinion is solely for the use of, and only to be relied upon by the MBoI.
John E. Wade, ACAS, MAAA
374 Meridian Parke Lane, Suite C
1. Reserve for Unpaid Losses (Liabilities, Surplus and Other Funds page, Line 1)
2. Reserve for Unpaid Loss Adjustment Expenses (Liabilities, Surplus and Other Funds page, Line 3)
$ 22,752,451
3. Reserve of Unpaid Losses - Direct and Assumed (Schedule P, Part 1, Totals from Cols. 13 and 15)
4. Reserve for Unpaid Loss Adjustment Expenses - Direct and Assumed (Schedule P, Part 1, Totals from Cols 17, 19 and 21)
5. The Page 3 write-in item reserve, “Retroactive Reinsurance Reserve Assumed”
6. Other Loss Reserve items on which the Appointed Actuary is expressing an Opinion (list separately)
7. Reserve for Direct and Assumed Unearned Premiums for Long Duration Contracts
8. Reserve for Net Unearned Premiums for Long Duration Contracts
9. Other Premium Reserve items on which the Appointed Actuary is expressing an Opinion (list separately)
$ 5,064,288
Last: Wade
Mid: E.
The Appointed Actuary’s Relationship to the Company.
Enter E or C based upon the following:
E if an Employee
C if a Consultant
The Appointed Actuary is a Qualified Actuary based upon what qualification? Enter F, A, M, or O based upon the following:
F if a Fellow of the Casualty Actuarial Society (FCAS)
A if an Associate of the Casualty Actuarial Society (ACAS)
M if not a member of the Casually Actuarial Society, but a Member of the American Academy of Actuaries (MAAA) approved by the Casualty Practice Council, as documented with the attached approval letter.
Type of Opinion, as identified in the OPINION paragraph. Enter R, I, E, Q, or N based upon the following:
R if Reasonable
I if Inadequate or Deficient Provision
E if Excessive or Redundant Provision
Q if Qualified. Use Q when part of the OPINION is Qualified.
N if No Opinion
$ 7,976,392
Discount included as a reduction in loss reserves and loss expense reserves as reported in Schedule P
9.1 Nontabular Discount
9.2 Tabular Discount
The net reserves for losses and expenses for the company’s share of voluntary and involuntary underwriting pools’ and associations’ unpaid losses and expenses that are included in reserves shown on the Liabilities, Surplus and Other Funds page, Losses and Loss Adjustment Expenses lines
The net reserves for losses and loss adjustment expenses that the company carries for the following liabilities included on the Liabilities, Surplus and Other Funds page, Losses and Loss Adjustment Expenses lines. *
The total claims made extended loss and expense reserve (Schedule P Interrogatories).
Other items on which the Appointed Actuary is providing Relevant Comment (list separately)
* The reserves disclosed in item 11 above, should exclude amounts relating to contracts specifically written to cover asbestos and environmental, exposures. Contracts specifically written to cover these exposures include Environmental Impairment Liability (post 1986), Asbestos Abatement, Pollution Legal Liability, Contractor’s Pollution Liability, Consultant’s Environmental Liability, and Pollution and Remediation Legal Liability.