Fall 2018 Q15 d)
I changed the highlighted cells to check my understanding:
- Would CY 2017 net reported claims be... -300? Because prior cumulative net losses were 1500, and then they became 1200?
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Comments
Yes, if the total gross loss goes below 1500 then those transactions (-300 in this case) count towards net reported losses because the insurer becomes responsible for them again and would get credit for the reduction.