Note X – Unpaid Claims Liabilities
As discussed in Note (____), the Pool establishes a liability for both reported and unreported insured events, which includes estimates of both future payments of losses and related claim adjustment expenses, both allocated and unallocated. The following represents changes in those aggregate liabilities for the Pool during the past two years:
At year-end 20____ $_______ of unpaid claims and claim adjustment expenses are presented at their net present value of $_______. These claims are discounted at annual rates ranging from ____ to ____ percent. Unpaid claims expenses of $_______ are not reported in the 20____ year-end balances because the Pool has purchased annuities in claimants’ names to settle those claims.
Instructions to preparer:
[1] Insert current year information.
[2] Insert previous year information.
Information in the unpaid claims liability note must tie to the Ten-Year Claims Development Schedule in Required Supplementary Information (RSI).