Property and Casualty Practice Note December 2008 4.
SCOPE Paragraph The net reserves included in the SCOPE paragraph are net of reinsurance, other than cessions used to distribute the losses to pool members. The SCOPE paragraph should indicate the accounting basis on which the entity is providing its financial information, the valuation date of data used in support of the opinion, and whether this data has been adjusted to reflect expected values as of December 31 of the year in question. Alternatively, if data reported by the entity is on a lagged basis, the number of months by which data are 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.
8.
The Actuarial Opinion Summary (AOS) does not apply to Pools and Associations.
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