CCIR.Instructions 60.35 and 60.45
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Warning! Warning! Pay attention to whether the exam problem gives you "net" claims (which do not include paid amounts) or "ultimate claims" (which do include paid amounts).
If you're given net claims, YOU MUST SUBTRACT paid amounts to get to correct excess (deficiency) result ← page 60.35 format
If you're given ultimate claims, DON'T SUBTRACT paid amounts to get to correct excess (deficiency) result ← page 60.45 format'
Can you explain why you must subtract paid amounts from net claims while net claims do not include paid amounts?
Comments
Because the net claims on page 60.35 is just the remaining unpaid (case + IBNR). To calculate XS or deficiency you'd wanna see whether the development of case and IBNR in a given period is more or less than the actual paid amount which is why you subtract the paid amounts.
When you are given ultimate it is easier. If your ultimate goes up you have a deficiency, otherwise you have an XS.