Property and Casualty Practice Note December 2010 which the SAO is provided. Alternatively, if data reported by the entity is on a lagged basis, the number of months by which data is lagged should be noted. Exhibit A should be modified to provide only those items relevant to Pools and Associations. 6.
RELEVANT COMMENTS paragraphs The Appointed Actuary must provide RELEVANT COMMENT paragraphs to address issues such as collectibility of assessments, the mechanism for recovering any pool deficits, or the nature of member’s liability as part of the pool. b. Other Disclosures in Exhibit B Exhibit B should be modified to provide only those items relevant to Pools and Associations. d. IRIS Ratios In lieu of comments about IRIS ratios, if the entity’s current reserves indicate adverse development of greater than 20% on reserve valuations established at the same date one year and/or two years prior, the actuary must include RELEVANT COMMENT on the factors that led to the unusual value(s) along with explanation.
Exhibits The exhibits required in the NAIC Annual Statement Instructions Property and Casualty should be modified to provide only those items relevant to Pools and Associations. The CASTF provides the following altered exhibits for reference. Exhibit A: SCOPE Loss Reserves: 1. Reserve for Unpaid Losses 2. Reserve for Unpaid Loss Adjustment Expenses
Amount $ ________ $ ________
3. Reserve for Unpaid Losses – Direct and Assumed $ ________ 4. Reserve for Unpaid Loss Adjustment Expenses – Direct and Assumed 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) Premium Reserves: 7. Reserve for Direct and Assumed Unearned Premiums for Long Duration Contracts 8. Reserve for Net Unearned Premiums for Long Duration Contracts
PN10
55
$ ________ $ XXX
$ ________ $
XXX
$
XXX
Appendix 3 NAIC Guidance for Actuarial Opinions for Pools and Associations