NAIC IRIS Ratios - Again

dperry@UNIGARD.COM
Thu, 9 Apr 1998 7:38:53 -0800

I guess these IRIS (or Irish) Ratios seem to be a spawning ground for picky=
=20
questions. I have a question this time on the Liabilities to Liquid Assets=20
test. It is my understanding that Liquid Assets =3D cash + invested assets=20=
+=20
accrued investment income - investments in affiliates - real estate=20
investments in excess of 5% of liabilities. In the Casualty Study Manual,=20
under the Troxel section, Problem 7 (from the 1991 exam), for some reason i=
n=20
the solution they also included agents' balances as part of Liquid Assets.=20
Is that correct? Intuitively to me, it does not make sense to include=20
agents' balances as Liquid Assets, because they do not seem all that liquid=
=20
to me. Maybe those of you who actually use these ratios in practice=20
(Victoria, I believe you said you did) would have a better idea. Let me=20
know. Thanks.