How do you do ULAE ?

Shander, Vladimir ( (no email) )
Thu, 30 Sep 1999 14:50:42 -0400

I work with the statutory ULAE data and need to know where does it actually
come from. In other words - how do people in real life deal with ULAE
reporting and reserving issues (Yes, I know that ULAE will now be "Adjusting
& Other" - see below). So, if you are working with ULAE in your company,
please, answer the questions below and share other relevant experience.
I also posted similar request at the CAS Web site (see "Student Discussion
Forum") to reach more actuaries and to provide for anonymity of postings.

* In what detail do you collect your paid data and in what detail do
you do ULAE reserving (by internal line of business, by Annual Statement/IEE
line, or do it in bulk and then allocate to lines and years)?

* Does your concept of ULAE include claims department overhead?

* Where did Y2K expenses, if any, go in your 1998 Annual Statement/IEE
- to General Expenses and ULAE or elsewhere?

* How did the change in NAIC concept of ALAE impact your reserving
procedures and carried amounts? And, if there is a noticeable impact , in
what direction did the money shift? [The definition of ULAE/ALAE was changed
beginning with 1998 Annual Statement. The definition differs significantly
and reflecting that, the 1999 Statement will use "Defense & Loss
Containment" (successor of ALAE) and "Adjusting & Other" (successor of ULAE)
]

Thanks.
Vladimir

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