Let me know if this suggestion helps:
1. In order to determine the effect of the change in definition of LAE for
outside adjusters:
Suppose you could perform an extract from your company's 1997 loss transaction
files and determine the outside adjuster payments during 1997. This amount,
or a further segregation of this amount by accident year, might be used as a
basis for evaluating the effect of the change in the definition of LAE for
outside adjusters.
2. In order to determine the effect of the change in definition of LAE for in-
house legal counsel:
If these were booked as ULAE in the past and will be booked as ALAE in 1998,
then they should be recorded in the 1998 loss transaction files. Would you be
able to perform an extract of this information at yearend 1998 in order to
determine the amount as well as the assignment to accident years, and use this
as a basis for your reserve analysis?
Frank Schnapp
Visit the CAS Web Site at http://www.casact.org
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