SERVICE ISSUES LOSS PAYMENT PATTERNS AND DISCOUNT FACTORS FOR ADJUSTING INSURANCE COMPANY LOSS RESERVES.
APR. 27, 1987
Rev. Rul. 87-34; 1987-1 C.B. 168
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Index Termsloss reserves
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation87 TNT 80-8
Citations: Rev. Rul. 87-34; 1987-1 C.B. 168
Rev. Rul. 87-34
For purposes of section 846 of the Internal Revenue Code, the following are the loss payment patterns and discount factors for calendar year 1987 for each property and casualty line of business to be used in discounting the deduction for loss reserves. Section 846 requires all property and casualty loss reserves (unpaid losses and unpaid loss adjustment expenses) for each line of business (as shown on the annual statement approved by the National Association of Insurance Commissioners (NAIC)) to be discounted for federal income tax purposes. The discount factors were determined by using an interest rate for 1987 and earlier years of 7.20 percent, the interest rate determined under section 846(c).
COMPOSITE SCHEDULE P
Total Losses Cumulative
Loss & loss and fraction of
Years before Year loss expense payments loss expense loss paid
current year incurred to date (000s) incurred (000s) (percent)
____________ _________ ________________ _______________ __________
AY + 0 1985 27050900 78832067 34.3146
AY + 1 1984 42762165 70059326 61.0371
AY + 2 1983 46304723 62932278 73.5787
AY + 3 1982 46339283 56724398 81.6920
AY + 4 1981 44014354 50826873 86.5966
AY + 5 1980 41790830 46281924 90.2962
AY + 6 1979 38531049 41768331 92.2494
AY + 7 1978 33285121 35572301 93.5703
AY + 8 1977 29524057 31225532 94.5510
AY + 9 1976 26745914 28167858 94.9519
AY + 10 Pre 1976 184257188 188825255 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Composite Schedule P continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 34.3146 65.6854 55.4722 84.4514
AY + 1 26.7225 38.9629 31.7985 81.6121
AY + 2 12.5416 26.4213 21.1027 79.8700
AY + 3 8.1133 18.3080 14.2218 77.6806
AY + 4 4.9046 13.4034 10.1676 75.8586
AY + 5 3.6996 9.7038 7.0692 72.8501
AY + 6 1.9532 7.7506 5.5559 71.6837
AY + 7 1.3209 6.4297 4.5883 71.3613
AY + 8 .9807 5.4490 3.9033 71.6331
AY + 9 .4009 5.0481 3.7693 74.6667
AY + 10 .4009 4.6472 3.6256 78.0160
AY + 11 .4009 4.2464 3.4716 81.7540
AY + 12 .4009 3.8455 3.3065 85.9831
AY + 13 .4009 3.4446 3.1295 90.8514
AY + 14 .4009 3.0437 2.9397 96.5834
AY + 15 3.0437 .0000 .0000 96.5834
AUTOMOBILE LIABILITY
Total Losses Cumulative
Loss & loss and fraction of
Years before Year loss expense payments loss expense loss paid
current year incurred to date (000s) incurred (000s) (percent)
____________ _________ ________________ _______________ __________
AY + 0 1985 10734519 31281287 34.3161
AY + 1 1984 18397279 28217053 65.1992
AY + 2 1983 20047428 24986353 80.2335
AY + 3 1982 19808529 22243403 89.0535
AY + 4 1981 18974882 20225872 93.8149
AY + 5 1980 17105852 17717217 96.5493
AY + 6 1979 16266022 16633374 97.7915
AY + 7 1978 14534843 14766868 98.4287
AY + 8 1977 12853464 13027563 98.6636
AY + 9 1976 11389407 11506437 98.9829
AY + 10 Pre 1976 91306371 91545592 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
(Automobile Liability continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 34.3161 65.6839 58.5753 89.1776
AY + 1 30.8830 34.8008 30.8172 88.5530
AY + 2 15.0344 19.7665 17.4699 88.3812
AY + 3 8.8200 10.9465 9.5957 87.6600
AY + 4 4.7614 6.1851 5.3568 86.6075
AY + 5 2.7344 3.4507 2.9113 84.3689
AY + 6 1.2422 2.2085 1.8348 83.0789
AY + 7 .6373 1.5713 1.3071 83.1890
AY + 8 .2349 1.3364 1.1580 86.6551
AY + 9 .3193 1.0171 .9108 89.5529
AY + 10 .3193 .6978 .6458 92.5519
AY + 11 .3193 .3785 .3617 95.5694
AY + 12 .3193 .0592 .0571 96.5834
AY + 13 .0592 .0000 .0000 96.5834
OTHER LIABILITY
Total losses Cumulative
Loss & loss and fraction of
Years before Year loss expense payments loss expense loss paid
current year incurred to date (000s) incurred (000s) (percent)
____________ _________ ________________ _______________ __________
AY + 0 1985 824218 8957695 9.2012
AY + 1 1984 1752555 6901148 25.3951
AY + 2 1983 2493908 6222045 40.0818
AY + 3 1982 3181315 5762517 55.2070
AY + 4 1981 3429366 5180556 66.1969
AY + 5 1980 3548964 4724863 75.1125
AY + 6 1979 3339115 4162493 80.2191
AY + 7 1978 3050437 3610079 84.4978
AY + 8 1977 2812829 3245716 86.6628
AY + 9 1976 2702169 3081827 87.6807
AY + 10 Pre 1976 23480898 25101360 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Other Liability continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 9.2012 90.7988 69.7143 76.7789
AY + 1 16.1939 74.6049 57.9670 77.6987
AY + 2 14.6867 59.9182 46.9344 78.3308
AY + 3 15.1252 44.7930 34.6534 77.3635
AY + 4 10.9898 33.8031 25.7699 76.2351
AY + 5 8.9157 24.8875 18.3942 73.9097
AY + 6 5.1066 19.7809 14.4314 72.9563
AY + 7 4.2787 15.5022 11.0404 71.2185
AY + 8 2.1650 13.3372 9.5937 71.9322
AY + 9 1.0179 12.3193 9.2305 74.9278
AY + 10 1.0179 11.3013 8.8412 78.2316
AY + 11 1.0179 10.2834 8.4238 81.9168
AY + 12 1.0179 9.2655 7.9764 86.0875
AY + 13 1.0179 8.2475 7.4968 90.8971
AY + 14 1.0179 7.2296 6.9826 96.5834
AY + 15 7.2296 .0000 .0000 96.5834
WORKERS' COMPENSATION
Total losses Cumulative
Loss & loss and fraction of
Years before Year loss expense payments loss expense loss paid
current year incurred to date (000s) incurred (000s) (percent)
____________ _________ ________________ _______________ __________
AY + 0 1985 3932938 15174769 25.9176
AY + 1 1984 7635807 14004437 54.5242
AY + 2 1983 8124465 11973169 67.8556
AY + 3 1982 8126215 10749254 75.5979
AY + 4 1981 8203632 10245226 80.0727
AY + 5 1980 7893190 9444281 83.5764
AY + 6 1979 7559441 8845526 85.4606
AY + 7 1978 6621807 7594942 87.1871
AY + 8 1977 5981586 6744498 88.6884
AY + 9 1976 5510811 6170361 89.3110
AY + 10 Pre 1976 46351166 48577936 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Workers' Compensation continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 25.9176 74.0824 60.0090 81.0030
AY + 1 28.6066 45.4758 34.7111 76.3287
AY + 2 13.3314 32.1444 23.4073 72.8193
AY + 3 7.7423 24.4021 17.0764 69.9794
AY + 4 4.4748 19.9273 13.6728 68.6137
AY + 5 3.5037 16.4236 11.0297 67.1575
AY + 6 1.8842 14.5394 9.8729 67.9048
AY + 7 1.7264 12.8129 8.7963 68.6515
AY + 8 1.5013 11.3116 7.8752 69.6203
AY + 9 .6226 10.6890 7.7976 72.9494
AY + 10 .6226 10.0664 7.7143 76.6347
AY + 11 .6226 9.4438 7.6251 80.7425
AY + 12 .6226 8.8211 7.5295 85.3573
AY + 13 .6226 8.1985 7.4270 90.5891
AY + 14 .6226 7.5759 7.3171 96.5834
AY + 15 7.5759 .0000 .0000 96.5834
MEDICAL MALPRACTICE
Total Losses Cumulative
Loss & loss and fraction of
Years before Year loss expense payments loss expense loss paid
current year incurred to date (000s) incurred (000s) (percent)
____________ _________ ________________ _______________ __________
AY + 0 1985 85689 2835465 3.0220
AY + 1 1984 312207 2404595 12.9838
AY + 2 1983 534322 2280478 23.4303
AY + 3 1982 745691 2095689 35.5821
AY + 4 1981 836834 1839826 45.4844
AY + 5 1980 846392 1574497 53.7563
AY + 6 1979 800223 1316417 60.7880
AY + 7 1978 745973 1109154 67.2560
AY + 8 1977 639578 883594 72.3837
AY + 9 1976 627818 835753 75.1200
AY + 10 Pre 1976 1959501 2323449 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Medical Malpractice continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 3.0220 96.9780 66.7988 68.8804
AY + 1 9.9617 87.0162 61.2942 70.4399
AY + 2 10.4465 76.5697 54.8913 71.6880
AY + 3 12.1519 64.4179 46.2617 71.8151
AY + 4 9.9023 54.5156 39.3400 72.1629
AY + 5 8.2719 46.2437 33.6080 72.6758
AY + 6 7.0316 39.2120 28.7474 73.3126
AY + 7 6.4681 32.7440 24.1203 73.6634
AY + 8 5.1277 27.6163 20.5479 74.4050
AY + 9 2.7363 24.8800 19.1942 77.1474
AY + 10 2.7363 22.1436 17.7431 80.1273
AY + 11 2.7363 19.4073 16.1874 83.4091
AY + 12 2.7363 16.6709 14.5198 87.0965
AY + 13 2.7363 13.9346 12.7321 91.3703
AY + 14 2.7363 11.1982 10.8156 96.5834
AY + 15 11.1982 .0000 .0000 96.5834
FARMOWNERS MULTIPLE PERIL, HOMEOWNERS MULTIPLE PERIL, COMMERCIAL
MULTIPLE PERIL, OCEAN MARINE, AIRCRAFT (ALL PERILS) AND
BOILER AND MACHINERY
Total Losses Cumulative
Loss & loss and fraction of
Years before Year loss expense payments loss expense loss paid
current year incurred to date (000s) incurred (000s) (percent)
____________ _________ ________________ _______________ __________
AY + 0 1985 11473534 20582849 55.7432
AY + 1 1984 14664316 18532075 79.1294
AY + 2 1983 15104598 17470233 86.4591
AY + 3 1982 14477532 15873533 91.2055
AY + 4 1981 12569638 13335391 94.2577
AY + 5 1980 12396429 12821063 96.6880
AY + 6 1979 10566246 10810520 97.7404
AY + 7 1978 8332059 8491257 98.1252
AY + 8 1977 7236609 7324158 98.8047
AY + 9 1976 6515706 6573477 99.1212
AY + 10 Pre 1976 21159251 21276916 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
(Farmowners Multiple Peril, Homeowners Multiple Peril, Commercial
Multiple Peril, Ocean Marine, Aircraft (All Perils) and
Boiler and Machinery, continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 55.7432 44.2568 39.3185 88.8417
AY + 1 23.3862 20.8706 17.9360 85.9388
AY + 2 7.3297 13.5409 11.6384 85.9497
AY + 3 4.7464 8.7945 7.5620 85.9857
AY + 4 3.0523 5.7423 4.9463 86.1380
AY + 5 2.4303 3.3120 2.7862 84.1235
AY + 6 1.0524 2.2596 1.8971 83.9594
AY + 7 .3847 1.8748 1.6354 87.2273
AY + 8 .6795 1.1953 1.0496 87.8062
AY + 9 .3165 .8788 .7975 90.7397
AY + 10 .3165 .5624 .5272 93.7474
AY + 11 .3165 .2459 .2375 96.5834
AY + 12 .2459 .0000 .0000 96.5834
FIRE
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 1182445 2142829 55.1815
AY + 1 1984 687222 944426 72.7661
AY + 2 Pre 1984 196764 462600 NA
AY + 3 NA NA NA
(Fire continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 55.1815 44.8185 42.1262 93.9928
AY + 1 32.6127 12.2058 11.3929 93.3400
AY + 2 6.1029 6.1029 5.8944 96.5834
AY + 3 6.1029 .0000 .0000 96.5834
ALLIED LINES
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 657907 1076282 61.1278
AY + 1 1984 297197 388220 76.5538
AY + 2 Pre 1984 77676 174175 NA
AY + 3 NA NA NA
(Allied Lines continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 61.1278 38.8722 36.6772 94.3531
AY + 1 29.7582 9.1141 8.5071 93.3400
AY + 2 4.5570 4.5570 4.4013 96.5834
AY + 3 4.5570 .0000 .0000 96.5834
INLAND MARINE
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 1101567 1913177 57.5779
AY + 1 1984 562321 731477 76.8747
AY + 2 Pre 1984 140515 321225 NA
AY + 3 NA NA NA
(Inland Marine continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 57.5779 42.4221 40.0395 94.3836
AY + 1 32.6119 9.8102 9.1569 93.3400
AY + 2 4.9051 4.9051 4.7375 96.5834
AY + 3 4.9051 .0000 .0000 96.5834
MISCELLANEOUS CASUALTY
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 185443 216664 85.5901
AY + 1 1984 12581 14861 84.6578
AY + 2 Pre 1984 1729 4100 NA
AY + 3 NA NA NA
(Miscellaneous Casualty continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 85.5901 14.4099 13.7072 95.1240
AY + 1 12.1991 2.2108 2.0635 93.3400
AY + 2 1.1054 1.1054 1.0676 96.5834
AY + 3 1.1054 .0000 .0000 96.5834
EARTHQUAKE
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 3852 13974 27.5655
AY + 1 1984 1654 3010 54.9502
AY + 2 Pre 1984 722 1757 NA
AY + 3 NA NA NA
(Earthquake continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 27.5655 72.4345 66.8556 92.2980
AY + 1 39.8029 32.6316 30.4583 93.3400
AY + 2 16.3158 16.3158 15.7584 96.5834
AY + 3 16.3158 .0000 .0000 96.5834
AUTO PHYSICAL DAMAGE
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 13876758 16695051 83.1190
AY + 1 1984 1743502 1864945 93.4881
AY + 2 Pre 1984 -128871 -44115 NA
AY + 3 NA NA NA
(Auto Physical Damage continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 83.1190 16.8810 16.1997 95.9640
AY + 1 15.7817 1.0993 1.0261 93.3400
AY + 2 .5496 .5496 .5309 96.5834
AY + 3 .5496 .0000 .0000 96.5834
FIDELITY
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 63993 281102 22.7650
AY + 1 1984 108652 212771 51.0652
AY + 2 Pre 1984 76630 196869 NA
AY + 3 NA NA NA
(Fidelity continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 22.7650 77.2350 71.0009 91.9285
AY + 1 39.4402 37.7947 35.2776 93.3400
AY + 2 18.8974 18.8974 18.2517 96.5834
AY + 3 18.8974 .0000 .0000 96.5834
SURETY
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 322557 869869 37.0811
AY + 1 1984 221719 418289 53.0062
AY + 2 Pre 1984 29380 252418 NA
AY + 3 NA NA NA
(Surety continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 37.0811 62.9189 57.9566 92.1131
AY + 1 33.3509 29.5680 27.5988 93.3400
AY + 2 14.7840 14.7840 14.2789 96.5834
AY + 3 14.7840 .0000 .0000 96.5834
GLASS
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 5330 8021 66.4506
AY + 1 1984 1482 1703 87.0229
AY + 2 Pre 1984 145 518 NA
AY + 3 NA NA NA
(Glass continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 66.4506 33.5494 31.9890 95.3490
AY + 1 29.1957 4.3537 4.0638 93.3400
AY + 2 2.1769 2.1769 2.1025 96.5834
AY + 3 2.1769 .0000 .0000 96.5834
BURGLARY AND THEFT
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 16947 35142 48.2243
AY + 1 1984 10304 13001 79.2554
AY + 2 Pre 1984 3182 8093 NA
AY + 3 NA NA NA
(Burglary and Theft continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 48.2243 51.7757 48.9850 94.6101
AY + 1 41.0350 10.7406 10.0253 93.3400
AY + 2 5.3703 5.3703 5.1868 96.5834
AY + 3 5.3703 .0000 .0000 96.5834
CREDIT
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 54286 218630 24.8301
AY + 1 1984 52253 126369 41.3495
AY + 2 Pre 1984 9995 43661 NA
AY + 3 NA NA NA
(Credit continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 24.8301 75.1699 68.4078 91.0043
AY + 1 31.0824 44.0875 41.1513 93.3400
AY + 2 22.0438 22.0438 21.2906 96.5834
AY + 3 22.0438 .0000 .0000 96.5834
CREDIT ACCIDENT AND HEALTH (group and individual)
Fraction of
Net losses Unpaid losses unpaid loss
Years before Year loss paid in year beginning of paid in year
current year incurred (000s) year (000s) (percent)
____________ _________ _____________ _____________ ____________
AY + 0 1985 50544 93229 54.2149
AY + 1 1984 26637 42512 62.6576
AY + 2 Pre 1984 8295 18171 NA
AY + 3 NA NA NA
(Credit Accident and Health continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 54.2149 45.7851 42.5944 93.0312
AY + 1 28.6879 17.0973 15.9586 93.3400
AY + 2 8.5486 8.5486 8.2566 96.5834
AY + 3 8.5486 .0000 .0000 96.5834
DOCUMENT ATTRIBUTES
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Index Termsloss reserves
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation87 TNT 80-8
