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43 Cards in this Set
- Front
- Back
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CCIR, Annual Statement Instructions, P&C-1 |
CCIR, Annual Statement Instructions, P&C-1 |
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Acquisition expenses
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expenses related to the acquisition of new and renewal business, e.g., commissions, premium taxes, allocated operating expenses
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Claims ratio
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Claims incurred / premium earned
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Contingent commission
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commission not exclusively attributable to premium volume and thus is not nondeferrable
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Deferred commission
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estimated amount of commission expense on direct and assumed premiums relating to the coverage period beyond the current year end by class of insurance and not reduced by unearned commissions on ceded business
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Unearned commission
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estimated amount of commission revenue on ceded premiums relating to the coverage period beyond the current year end by class and not reduced by deferred commissions on direct and assumed business
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Premium deficiency
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situation where unearned premiums are insufficient to cover expected policy liabilities, including servicing expenses
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Substantial investment
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investment involving more than 10% of voting rights or 25% of equity for federally registered insurers; provincially incorporated insurers should consult primary regulator for jurisdictional differences
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Self-insured retention (treatment + 2 requirements)
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If insurer pays the entire claim, SIR amount included under other liabilities and as an "other recoverable"
1. Regulators may request collateral to insure collectibility 2. Need for a reasonable IBNR provision for SIRs |
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Structured settlement type 1 - characteristics (4)
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1) Insurer owns annuity with payments irrevocably directed to the claimant
2) There are no current or future benefits to the insurer 3) Insurer is released by the claimant 4) Insurer is still liable if required payments are not made |
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Structured settlement type 1 - treatment (3)
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1) Insurer need recognize neither the liability nor the annuity as an asset
2) In Notes to the Financial Statements, need to disclose information on credit risk, including any contingent gain 3) Contingent gain not recognized at the time of purchase |
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Structured settlement type 2 - differences type 1 (2)
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1) Annuity is commutable, assignable, or transferable
2) Claimant does not necessarily provide a legal release |
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Structured settlement type 2 - treatment (3)
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1) Insurer must recognize the liability like other similar claim liabilities
2) Insurer must recognize the annuity as an asset -initially at its cost 3) Notes to show terms, conditions, credit risk, and fair value of annuities |
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Major changes in reinsurance arrangements (4)
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1) Type, e.g. proportional
2) Registration status 3) Protection level 4) Reinstatement provisions |
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Adjusted equity
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Equity
- Non-controlling interests - CR catastrophes - CR unregistered reinsurance |
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Incurred claims for AY
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Paid claims for AY
+ Unpaid claims for AY - Investment Income on UCAE & IBNR for AY |
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Expense Ratio
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Expenses / premium earned
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Net investment income from insurance
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MIN{ Net investment income,
average net unpaid claims & AE (net of reins. and salv. & subrog.) + average net unearned premiums (net of reins. and salv. & subrog.) + average unearned commission + average premium deficiency - average DPAE - average receivables (agents, brokers, policyholders and instalment premiums) } x investment yield |
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Net investment income - other
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Total net investment income
- net investment income from insurance |
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Net income/loss from insurance
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Underwriting income/loss
+ net investment income from insurance |
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Investment yield |
2 x NII (incl. realized cap. Gains/losses) x 100 / (Vb + Ve - NII (incl. realized cap. Gains/losses)) with V = cash, investment income due and accrued, total investments |
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Return on equity (ROE) |
2 x net income after tax x 100 / (Eb + Ee) |
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Total investments (7)
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Short term investments
+ bonds and debentures + mortgage loans + preferred shares + common shares + investment properties + other loans and investment assets |
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Receivables (7)
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Unaffiliated agents and brokers
+ policyholders + instalment premiums + other insurers + FA and PRR + subsidiaries, associates and joint ventures + other recoverables |
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Recoverable from reinsurance
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Unearned premium recoverable from reinsurance
+ unpaid claims & AE recoverable from reinsurance |
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Total assets (11) |
Total investments + property and equity |
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Total liabilities (12)
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Payables
+ expenses due + taxes due + policyholder dividends + unearned premiums (gross) + unpaid claims & AE + unearned commission + premium deficiency + self-insured retention portion of unpaid claims + DB pension (loss) + subordinated debt + preferred shares debt |
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Equity (6)
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Common and preferred shares
+ contributed surplus + retained earnings + reserves + AOCI + non-controlling interests |
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Net premiums earned
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Net premiums written (direct+assumed-ceded)
+ Change in net unearned premiums |
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Total underwriting revenue
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Net premiums earned
+ service charges |
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Total claims and expenses
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Net claims & AE
+ acquisition expenses + general expenses |
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Underwriting income/loss
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Underwriting revenue
- claims and expenses |
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Net income/loss
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Underwriting income
+ NII + other revenue and expenses - income taxes |
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Excess ratio |
(Change UCAE & IBNR - claims paid for subsequent years + investment income from UCAE & IBNR) / opening UCAE & IBNR |
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Gross risk ratio
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Gross premiums written / adjusted equity
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Net risk ratio
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Net premiums written / adjusted equity
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Net commission attribtutable to period
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Net commission
- change deferred commission + change unearned commission |
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Commission expense
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Direct commission
+ assumed commission - change deferred commission |
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Commission income
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Ceded commission
- change unearned commission |
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Total net commission
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Commission expense
- commission income + contingent commission (expense -income) + other non-deferrable commissions (expense -income) |
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List four items in P&C Summary of Selected Financial Data for Five Years |
1. Gross claims incurred 2. Net Investment Income 3. Net Risk Ratio 4. Claims Ratio by Accident Year |
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Non deferrable commissions |
Commissions that cannot be readily identified as exclusively relating to and varying with the acquisition of premiums and therefore are not recoverable. |
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Total equity (Extensive) |
Total equity = shares paid and issued + reserves + AOCI + retained earnings + contributed surplus |
