#1
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Reinsurance Pool Accounting
Hello,
The company I started working for has historically not been accounting for the NCCI WC Pool on a gross basis for premium, losses, and expenses. Instead, they have recorded the amounts net as an assessment expense. This is not in accordance with SSAP 63. The Q1 2018 results are now in and should be recorded as part of our June closing. My question is, do I record all quarter activity for every policy year, or do I only account for 2018 and forward as SSAP 63 prescribes and continue to net 2017 and prior activity as an expense? Or is there another way I should handle this? |
#2
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SSAP 3 is the source of guidance on the correction of errors (paragraphs 9 and 10). Technically, you should record an adjustment to beginning surplus and begin accounting for the transactions correctly. I don't know how material these errors are to your financial statements.
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Jeff Clevinger Booke Seminars Instructor |
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ncci, pool results |
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