Our Company is more than 10 years old. What is the correct way to report losses prior to 1996 in Schedule P?
For the 2005 Annual Blank, row 1 on Schedule P is labeled “Prior” and is for years prior to 1996. Although reserve information includes all reserves pertaining to “prior” years, the paid and incurred amounts should not be cumulative. Specifically, paid amounts should be the amounts paid during the report year (2005) that pertain to accident years 1995 and prior. Companies should closely follow the NAIC Annual Statement Instructions for Schedule P. As a reminder, Schedule P must be completed on an Accident Year basis. Accident Year is considered the date of the accident for occurrence coverages and the date of report for claims made coverages.
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