Description: The ACA’s Medical Loss Ratio Provisions

Description: In 2007 the International Accounting Standards Board IASB released a discussion paper proposing a new accounting model for insurance contracts, known as the current exit value model. One aspect of the proposed accounting model is that claim liabilities would need to include explicit margins satisfying certain criteria. Currently it is common for U.S. medical insurers to include explicit margins in their claim liabilities. However, we demonstrate that the margin approach most commonly used today by U.S. medical insurers does not satisfy the objectives articulated in the IASB discussion paper regarding the role of margins. We then propose a new formula for including explicit margins in U.S. medical insurance claim liabilities in a manner that is more compatible with the principles articulated in the IASB discussion paper. Finally, we illustrate our proposed claim liability formula using an example drawn from real-life data.

Description: Implications of the Final Health Privacy Rule HIPAA with regards to underwriting, renewing, rating, reserving, reinsurance and acquisitions. Issue No. 40.

Description: Full version of Health Section News, January 2002, Issue No. 42.

Description: Full version of Health Section News, October 2002, Issue No. 44.

Description: Full version of Health Watch News, Issue No. 56, September 2007.

Description: Full version of Health Section News, December 2000, Issue No. 39.

Description: Full version of Health Section News, April 2001, Issue No. 40.

Description: In 2018, the Financial Accounting Standards Board (FASB) adopted significant revisions to the U.S. GAAP insurance accounting literature, via Accounting Standards Update (ASU) 2018-12. The title of ASU 2018-12 is “Targeted Improvements to the Accounting for Long-Duration Contracts,” and as a result, a common acronym for ASU 2018-12 is LDTI (long-duration targeted improvements).

Description: This presentation is an open forum, session number 21OF, from the 2002 Valuation Actuary Symposium, held September 19-20 in Lake Buena Vista, FL. In this open forum, the panelists address the requirements under statutory codification, and the approaches being used to meet these requirements. Topics include policy classification, deferred taxes, disclosure, state differences, and implementation issues. Discussion from participants is included.