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I would have to research most of this, but I will start with the basics. (8)
CMP stands for "Commercial Multi-Peril". At FFIC (Fireman's Fund Insurance
Company) we divide our General Liability into CMP (Portfolio) and Monoline. We
also divide other commercial lines, such as commercial auto and property, this
way. CMP by iteself could mean CMP GL + CMP Auto + CMP Property + CMP Other.
(5) I would try Chapter 13 of the IASA text, but then again, some people aren't
even going to read this text. I probably know the Sch F and Sch P answers but
let's see if I can get back to you before someone else beats me to it ... The
likely answer to (2) is that you have your aging schedule that includes all
overdue amounts. The amounts in dispute are then taken out to calculate the
Provision for Reinsurance which is equal to the unauthorized unsecured +
20%(overdue) + 20%(in dispute). It used to be that only overdue amounts were
penalized, but then insurers found it to their advantage to classify overdue
amounts as being in dispute to avoid the penalty. I'll take a look at the
schedules again.
jimshoenfelt@amdyne.net ("Jim Shoenfelt") on 09/01/98 06:59:36 PM
To: studygroup7@lists.casact.org ("Exam7") @ INTERNET
cc: (bcc: Gwendolyn L. Anderson)
Subject: -No Subject-
Alright once again Ive got questions and no answers. Any help?
1) Line 1 of p. 3 is net of reinsurance recoverabels on unpaid losses - correct?
2) Schedule F - some parts the "overdue amount" includes "amounts in dispute"
other times not. Why the difference?
3) Is there a difference between "retroactive reinsurance" and "financial
reinsurance"? And if so, why does Feldblum's "Notes to Fin'l Statements" papre
have note 18: Retroactive reinsurance in the Loss Reserve valuation section and
"Note 17: Reinsurance commutations" in the "reinsurance section". They seem to
be flip sides of the same coin - no?
4) Apparently an insurer must disclose how many annuities it buys where the
insurer is the owner and payee of the annuity. Why would any regulators care
about this - since it doesnt affect how reserves are treated anyway? (SeeNote
to Finl statements study note p8)
5) Rsvs for Fed Inc Tax purposes are net of tab discount - but are tehy net of
nontab discount too? (Which paper covers this?)
6) Why are part2 & 4 of schedule p gross of all discounts when part 1 of
schedule P is net of tabular?
7) Feldblum's "Notes to fin'l statements" says that insurers may have failed to
report E&A exposures in the statutory annual statement because of SFAS#5's
rules for reporting contingencies. Why would insurers be confused - isnt SFAS5
for GAAP reporting and A/S has its own reporting rules (which presumably means
you reserve for expected value of incurred loss)? (See p. 19 of Nots to fin'l
statements reading)
8) What are the basic differences between a CMP and a GL policy? (I mean even
the basics - I don't know what a CMP is at all...)
That should cover it for today ; )
6)
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