Since Part 8 is intended to calculate the impact of your reinsurance
agreements on your surplus, there is no adjustment here.
The other lines 12 and 14 in liabilities, relate to business you cede
to others. The column 2 entry should match the column 1 entry to get a
zero in column 3.
Based on this, I would think that it is very unlikely that a non-zero
entry will show up in column 2 line 3 (and be correct in a Per Feldblum
question...)
He notes later in the paper, with his examples, that others may use
different methods for completing Part 8, and they are not necessarily
wrong. I can only assume that this is the reason he said "most
companies would show a zero" instead of "there is no adjustment"
Anyone else?
Gwendolyn_L._Anderson@ffic.com on 07/29/98 04:33:39 PM
To: studygroup7@lists.casact.org @ INTERNET
cc:
From: Gwendolyn_L._Anderson@ffic.com
Date: 07/29/98 04:33 PM
Subject: Schedule F, Part 8
Feldblum Schedule F
Page 8
Schedule F, Part 8, Line 3
"Most companies show a zero in column 2 for this line, since if it had
no ceded reinsurance, this line would not change."
I am not sure I understand how ceded reinsurance would affect this
entry. My own company shows a zero in column 2 of this line, but it
does have ceded reinsurance, as evidenced by positive entries in column
1 of lines 12 and 14.
Does anyone's 1997 A/S show a nonzero entry? Any ideas about when a
nonzero entry would occur?
Gwendolyn Anderson
Fireman's Fund Insurance Company
Novato, CA