For each row in the exhibit, the first column is "reality" and the
third is "if there was no ceded reinsurance". The company does cede
reinsurance, and we want to calculate the effect this has. The "net
credit for reinsurance" in the words of the AS.
Therefore, the NET unearned premium reserve of $40M
(direct+assumed-ceded) must be adjusted to the $60M amount
(direct+assumed). The second column shows the adjustment of -$20M.
One thing to keep an eye on throught this exhibit, is that some items
will not necessarily be easiest to calculate by doing columns 1, then
column 2 then column 3. For instance, if you know the direct and
assumed Unearned Premium reserves, you can just add them to get column
3.
aoswald@calfarm.com on 08/13/98 03:42:59 PM
To: studygroup7@lists.casact.org @ INTERNET
cc:
From: aoswald@calfarm.com
Date: 08/13/98 03:42 PM
Subject: Schedule F
This message is in MIME format. Since your mail reader does not
understand this format, some or all of this message may not be legible.
------------------------------------------------------------------------
****** Message from InterScan E-Mail VirusWall NT ******
** No virus found in attached file noname
No known Viruses were detected
***************** End of message ***************
------------------------------------------------------------------------
As it was explained in an earlier posting, Schedule F, Part 8 restates
the balance sheet as if there were no ceded reinsurance. If this is
true, then I do not understand the adjustment made to line 10
(Unearned premiums) in Feldblum's example on pages 30 -35. If there
is no ceded reinsurance, why would there be a ceded unearned premium
reserve. What is it I'm missing?
--Boundary=_0.0_=0037000002965162
Content-Type: application/octet-stream; name=x
Content-Transfer-Encoding: base64
eJ8+IicTAQaQCAAEAAAAAAABAAEAAQeQBgAIAAAA5AQAAAAAAADoAAEIgAcAGAAAAElQTS5NaWNy
b3NvZnQgTWFpbC5Ob3RlADEIAQmAAQAhAAAAMTA5ODM2QTc3ODMxRDIxMUE5MDEwMDA4QzdBMEIw
OTMAygYBIIADAA4AAADOBwgADQAMABIAJAAEADABAQWAAwAOAAAAzgcIAAsAEgABAAUAAgACAQEN
gAQAAgAAAAIAAgABBIABAAwAAABTY2hlZHVsZSBGIACzAwEDkAYAYAYAABcAAABAADkAcP+TrozF
vQEeAHAAAQAAAAwAAABTY2hlZHVsZSBGIAACAXEAAQAAABYAAAABvcWMrmynNpgXMXgR0qkBAAjH
oLCTAAADAAYQJWra7AMABxArAQAAHgAIEAEAAABlAAAAQVNJVFdBU0VYUExBSU5FRElOQU5FQVJM
SUVSUE9TVElORyxTQ0hFRFVMRUYsUEFSVDhSRVNUQVRFU1RIRUJBTEFOQ0VTSEVFVEFTSUZUSEVS
RVdFUkVOT0NFREVEUkVJTlNVUgAAAAADABAQAAAAAAMAERAAAAAAAgEJEAEAAAAXBAAAEwQAAHcI
AABMWkZ1dHaa1DcACQMwAQI1APILYG5nsDEwMzMB9wHxMwRGiQIAY2gKwHNldALR4HBycTEgCFUC
gw4A8wPUEC0yIAcTAoACkQjmCjsJbzAUr2UyNTX/FdoW8RavF7kVxBfiFk8aHw8Z3RlfF48V32Ux
Mjj/H6ogwSB/IYkVxCGyIB8j788jrSMvIV8lJDkyKGUp0Ych8ynQAoJzdHlsB5AaaAngdAAAA/Bk
Y3QebAqzEeMB0AMwc25lvngQoAewBbAAwAJzKgjQBnMOkAMwYWRkaXQgaXZlIEQBEGF1KmwFQFAK
wGEJwGFw2GggRgIhKwMxDgAsB3sKIAsgcglQMeISYDHidzY0HxEQcHAtAiy4YmH9EIBkAiABQC1D
MRAv0AUQDQIwLTBwA2E6IFRvoTYAU3ViagWQdDYAoERhdGU6MMQ2MT//Mk8zUyuQLtALgA6AGGAt
EZ8MMCy0E2A0LzU3UmUvMHEQcSBIZS7QEYQugDf3N784zznbMEFwOtgBQA5UZDI0O48xOD0hC1B5
3i8wgDLQCxE9pXMwxCHQ/z6fP68zb0NPRFk2IjXENvUyfQFVMzYBQCwBb3f3LDBGwQGAbjaAAGAJ
8C7g/m8A4AIQLdA6Ii9AAgAQkTsuMjcQbQtRNxAvUDpcAlwF4E9GRklDRQFQEFdJTldPUkStUBBF
AMADEC478HRL8P8QgCwwROBCUAuALWABQE3B1m4roBTAIC4ycACABZBYbHZsAFBTwHUFAG3/U7IB
kAAgVEILgAEAAjABwX9TsRBQDnAAAFPADNABkCD+LhPiU6gp4FRiL7BGcFTf/1XvVv8PkFPABYFY
n1mvWr90bDRTsWxYX10fXiUpH1csDgBb/2DfXhRiICj/ApFh/1PzN6Bfr2RvZX9mj/9UID5wZ9JU
r2k/ak9XLCHQ32ffbV9ub29/VCA5bE9x3/9y73P1CvkDMCwPLRAPYhNw+wQgLwAgRLAEIC1gC1MJ
gD97QAOgA5E9wEbACJEgcPZvK0A6YSwGABBACYAvoP0vQEZ9sC/hBUBEABTAddFrNxAEIHQroCA7
sA5RY28vQCuTfIB7MWZ/glNRd/FTQm5vIIAgAQBE4BTADQuAcwhwgAIuICBJ74DyBAB7QH9xcgpQ
fbB/kbkDoEkgO/CBsQVAdXZxnxBwAZBN0H+DLtBqdStA2weAAjAgAMBOoXSB0FKC8iAukShVLVAK
wHwiEOApT3BpdU5gKXxSRmXcbGQKMXWQEPB1UdCAMf17sWFPgS9AAiB9MDAQB5HiMy0QLTM1gwZT
QoOBx4HPgBF9sHdoeXtwCGD7iVCBBWKF8YzVhSCH/H7y9wSQLzCDAVcQUAVAg4IFQL5JibaQsIiQ
BBA6YT8KhQsKhRPgAJRgAAMANgAAAAAAAwAmAAAAAAACAfk/AQAAAB4AAAAAAAAA3KdAyMBCEBq0
uQgAKy/hggEAAAAAAAAALgAAAB4A+D8BAAAAFQAAAFN5c3RlbSBBZG1pbmlzdHJhdG9yAAAAAAIB
+z8BAAAAHgAAAAAAAADcp0DIwEIQGrS5CAArL+GCAQAAAAAAAAAuAAAAHgD6PwEAAAAVAAAAU3lz
dGVtIEFkbWluaXN0cmF0b3IAAAAAQAAHMEBY/BOMxb0BQAAIMACMoivvxr0BAwANNP0/AAACARQ0
AQAAABAAAABUlKHAKX8QG6WHCAArKiUXHgA9AAEAAAABAAAAAAAAAAsAKQABAAAACwAjAAAAAAAC
AX8AAQAAAEMAAAA8Yz1VUyVhPV8lcD1aZW5pdGhfSW5zdXJhbmNlJWw9SVNEL0hFUk1FUy8wMDA1
REM2OUBoZXJtZXMuemljLmNvbT4AAFTq
--Boundary=_0.0_=0037000002965162--