Help Financial Statements For Year Ended April 30, 2003•
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.High -Level Excess
Liability Pool, Illinois
General Purpose Financial Statements
and Independent Auditors' Report
April 30, 2003 and 2002
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MILLER COOPER & CO., LTD.
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MILLER
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ACCOUNTANTS AND CONsuLTANrs
Members of the Board of Directors
High -Level Excess Liability Pool, Illinois
In planning and performing our audit of the financial statements of the High -Level Excess Liability Pool,
Illinois (the Pool) for the year ended April 30, 2003, we considered its internal control in order to
determine our auditing procedures for the purpose of expressing our opinion on the financial statements
and not to provide assurance on internal control.
However, we noted several matters that are opportunities for strengthening internal controls and operating
efficiency and certain matters involving internal control and its operation that we consider to be
reportable conditions under standards established by the American Institute of Certified Public
Accountants. Reportable conditions involve matters coming to our attention relating to significant
deficiencies in the design or operation of internal control that, in our judgment, could adversely affect the
Company's ability to record, process, summarize, and report financial data consistent with the assertions
of management in the financial statements.
Because of inherent limitation of internal control, errors or irregularities may nevertheless occur and not
be detected. Also, projection of any evaluation of the internal control to future periods is subject to the
risk that may become inadequate because of changes in conditions or that the degree of compliance may
deteriorate.
The reportable conditions and our comments and suggestions follow:
Investment Income
The investments are adjusted to market value only at the end of the fiscal year. We suggest the Pool
prepare monthly reconciliations of the investment accounts to properly reflect interest, dividends, and
realized and unrealized gains/losses on a more timely basis. In addition, identify any unexpected
differences and allow for further investigation in a timely manner.
Management Response:
The Treasurer reconciles the bank statements and investment reports via an excel spreadsheet that
is updated monthly. Journal entries are made to record year to date cumulative investment
income for periodic income statements issued to the Board for meetings and at year end.
Booking interest income monthly from each account to the quick books general ledger program
would add administrative effort. The equity investments, in particular, are more complicated to
track in terms of realized and unrealized investment gains, and does result in some additional
work for the auditors at year end.
The Treasurer feels the time to make this reporting improvement is not worth the effort.
650 DUNDEE ROAD, SurrE 250
NORTHBROOX, IL 60062 -2759
PHONE 847/205 -5000 FAX 847/205 -1400
e -mail mccltd@millercooper.com
Members of the Board of Directors
High -Level Excess Liability Pool, Illinois
REQUIRED COMMUNICATION TO THE MEMBERS OF THE BOARD OF TRUSTEES
Page Two
The American Institute of Certified Public Accountants requires the independent auditor to communicate
certain matters related to the conduct of each audit to those members of the Pool's Board who have
responsibility for the oversight of the financial reporting process. The following is our related comment.
Segregation of Duties
One individual has significant control over and responsibility for your accounting system. While
we recognize that it may not be cost effective to employ more people, we bring it to your
attention and emphasize that a strong system of supervision and review by management is needed
to compensate for this weakness. While we are aware that the board has formerly accepted this
reportable condition, it is important for you to continue to recognize that regular and active
involvement in supervisory activities is an integral and critical component of the Pool's system of
internal control procedures.
Estimates Included in the Pool's Financial Statements
In preparing financial statements in conformity with accounting principles generally accepted in
the United States of America, management is required to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.
This report is intended solely for the information and use of the Board of Directors, management and
others within the Pool and is not intended to be and should not be used by anyone other than these
specified parties. We appreciate serving the Pool and would be happy to assist you in addressing and
implementing any of the suggestions in this letter.
MILLER, COOPER & CO., LTD.
Certified Public Accountants
Northbrook, Illinois
June 10, 2003
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CONTENTS
Page
PRINCIPAL OFFICIALS 3
INDEPENDENT AUDITORS' REPORT 4
GENERAL PURPOSE FINANCIAL STATEMENTS
Balance Sheets 6
Statements of Revenues, Expenses, and Changes in Retained Earnings - Budget
and Actual 7
Statements of Cash Flows. 8
Notes to the Financial Statements 9-15
REQUIRED SUPPLEMENTARY INFORMATION 17-19
MILLER COOPER & CO., LTD.
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High -Level Excess Liability Pool, Illinois
PRINCIPAL OFFICIALS
April 30, 2003
Diane Lembesis Chairman
Dave Richardson Vice- Chairman
Robert Nowak Secretary
Edward McKee Treasurer
MILLER COOPER & CO., LTD.
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MILLER
CAPER
&Co.)Ltd
ACCOUNTANTS AND CONsuLTAN 's
INDEPENDENT AUDITORS' REPORT
Members of the Board of Directors
High -Level Excess Liability Pool, Illinois
We have audited the accompanying general purpose financial statements of the High -Level Excess Liability Pool,
Illinois, as of and for the years ended April 30, 2003 and 2002. These general purpose financial statements are
the responsibility of the High -Level Excess Liability Pool, Illinois' management. Our responsibility is to express
. an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
. evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects,
is the financial position of the High -Level Excess Liability Pool, Illinois as of April 30, 2003 and 2002, and the
results of its operations and its cash flows for the years then ended in conformity with accounting principles
generally accepted in the United States of America.
Our audits were performed for the purpose of forming an opinion on the general purpose financial statements of
High -Level Excess Liability Pool, Illinois, taken as a whole. The accompanying financial information listed as
required supplementary information in the accompanying contents, pages 17 through 19, is presented for purposes
of additional analysis required by the Governmental Accounting Standards Board and is not a required part of the
general purpose financial statements of the High -Level Excess Liability Pool, Illinois. Such information has been
subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our
opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a
• whole.
MILLER, COOPER & CO., LTD.
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Certified Public Accountants
Northbrook, Illinois
June 10, 2003 650 DUNDEE ROAD, surrE 250
NORTHBROO& EL 60062 -2759
PHONE 847/205 -5000 FAx 847/205 -1400
e -mail mccltd@millercooper.com
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GENERAL PURPOSE FINANCIAL STATEMENTS
MILLER COOPER & CO., LTD.
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High -Level Excess Liability Pool, Illinois
BALANCE SHEETS
• April 30, 2003 and 2002
ASSETS 2003 2002
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CURRENT ASSETS
Cash and investments $ 7,137,854 $ 6,525,091
Interest receivable - 47,396
Total assets $ 7,137,854 $ 6,572,487
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LIABILITIES AND FUND EQUITY
• CURRENT LIABILITIES
Accounts payable $ 4,000 $ 4,000
Claims reserve 1,948,888 1,383,000
Total liabilities 1,952,888 1,387,000
' FUND EQUITY
Retained earnings 5,184,966 5,185,487
Total liabilities and fund equity $ 7,137,854 $ 6,572,487
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The accompanying notes are an integral part of these statements.
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High -Level Excess Liability Pool, Illinois
STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL
Years ended April 30, 2003 and 2002
Operating revenues
Member assessments
Operating expenses
Risk management consultants
Excess insurance
Claims expense
Attorney's fees
Case review
Corporate matters
Auditing fees
Surety bonds
Meeting expenses
Office supplies and expense
Memberships and dues
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Investment income (expense)
NET INCOME (LOSS)
Retained earnings
Beginning of year
End of year
2003 2002
Budget Actual Budget , Actual
$ 1,215,900 $ 1,215,900 $ 1,013,250 $ 1,013,249
35,000 40,992
400,000 370,375
- 608,139
30,000 30,500
240,000 240,000
- 2,368,514
30,000
14,221
27,000
45,704
20,000
18,000
15,122
5,000
1 ,429
4,750
4,400
1,000
1,068
1,000
-
2,000
-
2,000
252
100
-
100
-
5,000
3,094
5,000
5,360
498,100
1,055,375
327,850
2,709,852
717,800
160,525
685,400
(1,696,603)
150,000
(161,046)
600,000
303,282
$ 867,800
(521) $
1,285,400
(1,393,321)
5,185,487 6,578,808
$ 5,184,966 $ 5,185,487
The accompanying notes are an integral part of these statements.
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MILLER COOPER & CO., LTD.
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High -Level Excess Liability Pool, Illinois
STATEMENTS OF CASH FLOWS
Years ended April 30, 2003 and 2002
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The accompanying notes are an integral part of these statements.
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MILLER COOPER & Co., LTD.
2003
2002
Cash flows from operating activities
Operating income (loss)
$ 160,525 $
(1,696,603)
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities
Unrealized gain (loss) on investments
41,217
(39,646)
Increase (decrease) in assets and liabilities
Accounts payable
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(10,875)
Claims reserve
565,888
(1,738,000)
Net cash provided by (used in) operating activities
767,630
(3,485,124)
Cash flows from investing activities
Sales of investments
2,628,562
2,973,671
Purchases of investments
(672,099)
(1,307,610)
Investment income (loss)
(154,867)
381,209
Net cash provided by investing activities
1,801,596
2,047,270
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INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
2,569,226
(1,437,854)
Cash and cash equivalents
Beginning of year
105,879
1,543,733
End of year
$ 2,675,105 $
105,879
Reconciliation
Cash and cash equivalents
$ 2,675,105 $
105,879
Investments
4,462,749
6,419,212
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Total cash and investments
$ 7,137,854 $
6,525,091
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The accompanying notes are an integral part of these statements.
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MILLER COOPER & Co., LTD.
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High -Level Excess Liability Pool, Illinois
NOTES TO THE FINANCIAL STATEMENTS
• Agri130, 2003 and 2002
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of High -Level Excess Liability Pool, Illinois (Intergovernmental Risk Pool), have
been prepared in conformity with accounting principles generally accepted in the United States of America
(GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the
accepted standard - setting body for establishing governmental accounting and financial reporting
principles. The more significant of the Intergovernmental Risk Pool's accounting policies are described
below.
1. Reporting Entity and its Services
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In evaluating how to define the Intergovernmental Risk Pool for financial reporting purposes,
management has considered all potential component units. The decision to include a potential
component unit in the reporting entity was made by applying the criteria set forth in GASB Statement
No. 14, "The Financial Reporting Entity ". Based upon the application of these criteria, there are no
• potential component units to be included in the Intergovernmental Risk Pool's reporting entity. The
Intergovernmental Risk Pool is defined as a joint venture under these standards.
The Intergovernmental Risk Pool was organized on April 1, 1987. The current agreement expires
April, 30, 2008. The purpose of the Intergovernmental Risk Pool is to act as a joint self - insurance pool
• for the purpose of seeking the prevention or lessening of liability claims for injuries to persons or
property or claims for errors and omissions made against the members and other parties included within
the scope of coverage of the Intergovernmental Risk Pool. The initial amount of coverage provided to
the members by the Intergovernmental Risk Pool was $1,000,000 per occurrence and in the aggregate,
with a self - insured retention of $1,000,000. The amount of coverage provided to the members by the
• Intergovernmental Risk Pool for subsequent years is as follows:
Year ended
Occurrence
Excess
April 30,
Limit
Coverage
• 1988 -1994
$ 5,000,000
$ -
1994 -1996
5,000,000
5,000,000
1996 -1999
2,000,000
8,000,000
1999 -2000
2,000,000
10,000,000
2000 -2001
2,000,000
12,000,000
2001 -2003
3,000,000
8,000,000
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MILLER COOPER & CO., LTD.
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High -Level Excess Liability Pool, Illinois
NOTES TO THE FINANCIAL STATEMENTS
April 30, 2003 and 2002
0 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1. Reporting Entity and its Services (Continued)
Entities joining the Intergovernmental Risk Pool, at its inception, must remain members for a minimum
• of ten years. Entities applying for membership in the Intergovernmental Risk Pool may do so on
approval of a two- thirds vote of the Board of the Intergovernmental Risk Pool. Underwriting and rate -
setting policies have been established after consultation with actuaries. Members are subject to a
supplemental assessment in the event of deficiencies.
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100.00% 100.00% $ 15,731,720
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MILLER COOPER & CO., LTD.
At April 30, 2003, the following municipalities were members of the Intergovernmental Risk Pool:
% Share
Current
Assets,
Cumulative
Annual
Liabilities,
Premium
Premium
and Equity
Contributions
Village of Arlington Heights
11.77%
11.82%
$ 1,858,538
Village of Chicago Ridge
2.56
2.47
389,096
Village of Deerfield
3.55
3.55
558,829
City of Des Plaines
9.24
10.16
1,598,728
Elk Grove Village
7.77
7.74
1,217,632
Village of Glenview
7.82
6.89
1,084,372
Village of Hoffinan Estates
8.51
7.74
1,217,098
Village of Lincolnshire
1.76
1.54
242,069
Village of Mount Prospect
7.29
7.38
1,161,674
Village of Oak Lawn
8.89
9.36
1,472,083
City of Park Ridge
6.04
5.74
903,752
Village of Skokie
9.16
9.77
1,537,001
Village of Streamwood
4.39
4.36
686,130
City of Wheaton
7.47
7.37
1,158,642
Village of Winnetka
3.78
4.11
646,076
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100.00% 100.00% $ 15,731,720
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MILLER COOPER & CO., LTD.
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High -Level Excess Liability Pool, Illinois
NOTES TO THE FINANCIAL STATEMENTS
0 April 30, 2003 and 2002
0 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2. Fund Accounting
The Intergovernmental Risk Pool operates as a single proprietary fund, more specifically as an
enterprise fund. Proprietary funds are used to account for activities similar to those found in the
private sector, where the determination of net income is necessary or useful to sound financial
administration. Goods or services from such activities are provided to outside parties. Its operations
are such that:
i a) The Intergovernmental Risk Pool provides risk management services to its member
municipalities,
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b) Members fund the Intergovernmental Risk Pool to cover the costs of providing such services.
3. Basis of Accountiniz
The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus.
All proprietary funds are accounted for on a flow of economic resources measurement focus. With this
measurement focus, all assets and all liabilities associated with the operation of these funds are
included on the balance sheet. Proprietary fund -type operating statements present increases (e.g.,
revenues) and decreases (e.g., expenses) in net total assets.
The accrual basis of accounting is utilized by proprietary fund types. Under this method, revenues are
recorded when earned and expenses are recorded at the time liabilities are incurred.
The Intergovernmental Risk Pool has elected to apply all applicable GASB pronouncements and all
FASB Statements and Interpretations, Accounting Principles Board (APB) Opinions and Accounting
Research Bulletins (ARB) issued on or before November 30, 1989, unless they conflict with or
contradict GASB pronouncements.
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High -Level Excess Liability Pool, Illinois
NOTES TO THE FINANCIAL STATEMENTS
April 30, 2003 and 2002
• NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
4. Budgets
Budgets are adopted on a basis consistent with GAAP. Annual budgets are adopted for the
Intergovernmental Risk Pool. All annual budgets lapse at fiscal year end.
5. Cash Equivalents
For purposes of the statement of cash flows, the Intergovernmental Risk Pool considers all highly liquid
investments with an original maturity of three months or less, when purchased, to be cash equivalents.
6. Claims Reserve Liabilities
The Intergovernmental Risk Pool establishes claims reserve liabilities based upon an estimate of the
ultimate cost of claims that have been reported but not settled, and of claims that have been incurred
but not reported. The length of time for which such costs must be estimated varies depending on the
individual facts and circumstances. Adjustments to claims reserve liabilities are charged or credited to
expense in the period in which they are made. (See Note E)
9 7. Use of Estimates
In preparing financial statements, management is required to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and expenses during the
41 reporting period. Because the final resolution of potentially large claims against the Intergovernmental
Risk Pool is uncertain, management believes that actual results could differ materially from those
estimates.
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MILLER COOPER & CO., LTD.
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High -Level Excess Liability Pool, Illinois
NOTES TO THE FINANCIAL STATEMENTS
April 30, 2003 and 2002
• NOTE B - LEGAL COMPLIANCE AND ACCOUNTABILITY
Budgets
The budget is prepared by function and activity, and includes information on the past year, current year
• estimates, and requested amounts for the next fiscal year.
The proposed budget is presented to the governing body for review. The governing body may add to,
subtract from, or change amounts, but may not change the form of the budget.
• The budget may be amended by a majority vote of the governing body. No amendments were passed for
2003 and 2002.
NOTE C - DEPOSITS AND INVESTMENTS
Permitted Deposits and Investments - The Intergovernmental Risk Pool's investment policy mirrors State
Statutes which authorize the Intergovernmental Risk Pool to make deposits /invest in commercial banks,
savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, insured credit union
shares, repurchase agreements, commercial paper rated within the three highest classifications by at least
two standard rating services, and the Illinois Funds.
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Investments
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The Intergovernmental Risk Pool's investments are categorized to give an indication of the level of risk
assumed by the entity at year -end. Category 1 includes investments that are insured or registered for
which the securities are held by the Intergovernmental Risk Pool or its agent in the Intergovernmental Risk
Pool's name. Category 2 includes uninsured and unregistered investments for which the securities are held
by the counterparty's trust department or agent in the Intergovernmental Risk Pool's name. Category 3
includes uninsured and unregistered investments for which the securities are held by the counterparty, or
by its trust department or agent but not in the Intergovernmental Risk Pool's name and uninsured,
unregistered and uncollateralized investments.
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MILLER COOPER & CO., LTD.
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High -Level Excess Liability Pool, Illinois
NOTES TO THE FINANCIAL STATEMENTS
April 30, 2003 and 2002
• NOTE C - DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Category Fair
• 1 2 3 Value
Common stocks $.2,017,390 $ - $ - $ 2,017,390
Not subject to risk
Money market mutual funds 92,919
Illinois Metropolitan Investment Fund 2,352,440
Illinois Funds 2,675,105
$ 7,137,854
The money market fund is secured by the Securities Investor Protection Corporation (SIPQ and additional
private insurance. The Illinois Funds are managed by the Illinois State Treasurer as provided by the State
Statutes, and the Illinois Metropolitan Investment Fund is managed by the financial institutions in which it
is held. The market value of each fund equals the carrying value.
NOTE D - CONTINGENT LIABILITIES
Litigation
There are several claims and legal actions pending against members of the Intergovernmental Risk Pool.
40 Management and their legal counsel believe that certain actions against the members could result in losses
to the Intergovernmental Risk Pool. Except as discussed in Note E, no additional amounts have been
recorded as losses and additional claims reserve because unfavorable outcomes are not probable and
cannot be reasonably estimated.
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MILLER COOPER & Co., LTD.
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High -Level Excess Liability Pool, Illinois
NOTES TO THE FINANCIAL STATEMENTS
• April 30, 2003 and 2002
• NOTE E - CLAIMS RESERVE LIABILITIES
As discussed in Note A, the Intergovernmental Risk Pool establishes a liability for both reported and
unreported insured events, which includes estimates of future payments for both claims and losses and
related claims adjustment expenses. The schedule below presents the changes in claims reserve for the
• years ended April 30, 2003 and 2002, respectively.
Claims reserve at beginning of year
• Claims expense
Claims paid
Claims reserve at end of year
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MILLER COOPER & CO., LTD.
$ 1,383,000
608,139
(42,251)
$ 1,948,888
$ 3,121,000
2,368,514
(4,106,514)
$ 1,383,000
REQUIRED SUPPLEMENTARY INFORMATION
MILLER COOPER & CO., LTD.
High -Level Excess Liability Pool, Illinois
REQUIRED SUPPLEMENTARY INFORMATION
April 30, 2003 and 2002
C,
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Ten -Year Claims Development Information
The table below illustrates how the Intergovernmental Risk Pool's earned revenues and investment income
compare to related costs of losses and other expenses assumed by the Intergovernmental Risk Pool as of
the end of each of the last ten years. The rows of the table are defined as follows: (1) This line shows the
total of each fiscal year's earned contribution revenues and investment revenues. (2) This he shows each
fiscal year's other operating costs of the Intergovernmental Risk Pool, including overhead and claims
expense not allocable to individual claims. (3) This line shows the Intergovernmental Risk Pool's incurred
claims and allocated claims adjustment expenses (both paid and accrued) as originally reported at the end
• of the first year in which the event that triggered coverage under the contract occurred (called policy
year).
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Reconciliation of Claims Reserve Liabilities by Type of Contract
The schedule below presents changes in claims and liabilities
for the past two years for the
Intergovernmental Risk Pool's liability contracts:
Liability
r
2003
2002
Unpaid claims and claims adjustment expenses at the beginning
of the fiscal year
$ 1,383,000 $
3,121,000
Incurred claims and claims adjustment expenses
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Provision for insured events of the current fiscal year
505,000
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Increases in provision for insured events of prior fiscal years
103,139
2,368,514
Total incurred claims and claims adjustment expenses
608,139
2,368,514
Payments
Claims and claims adjustment expenses attributable to
insured events of the current fiscal year
-
-
Claims and claims adjustment expenses attributable to
insured events of prior fiscal years
42,251
4,106,514
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Total payments
42,251
4,106,514
Total unpaid claims and claims adjustment expenses at the
end of the fiscal year
$ 1,948,888 $
1,383,000
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Ten -Year Claims Development Information
The table below illustrates how the Intergovernmental Risk Pool's earned revenues and investment income
compare to related costs of losses and other expenses assumed by the Intergovernmental Risk Pool as of
the end of each of the last ten years. The rows of the table are defined as follows: (1) This line shows the
total of each fiscal year's earned contribution revenues and investment revenues. (2) This he shows each
fiscal year's other operating costs of the Intergovernmental Risk Pool, including overhead and claims
expense not allocable to individual claims. (3) This line shows the Intergovernmental Risk Pool's incurred
claims and allocated claims adjustment expenses (both paid and accrued) as originally reported at the end
• of the first year in which the event that triggered coverage under the contract occurred (called policy
year).
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MILLER COOPER & CO., LTD.
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High -Level Excess Liability Pool, Illinois
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
Ten Year Claims Development Information
April 30, 2003 and 2002
Ten -Year Claims Development Information (Continued)
(4) This section of ten rows shows the cumulative amounts paid as of the end of successive years for each policy
year. (5) This section of ten rows shows how each policy year's incurred claims increased or decreased as of the
end of successive years. This annual re- estimation results from new information received on known claims, 0
reevaluation of existing information on known claims, as well as emergence of new claims not previously known.
(6) This line compares the latest reestimated incurred claims amount to the amount originally established (line 3),
and shows whether this latest estimate of claims cost is greater or less than originally thought. As data for
individual policy years mature, the correlation between original estimates and reestimated amounts is commonly
used to evaluate the accuracy of incurred claims currently recognized in less mature policy years. The columns of
the table show data for successive policy years.
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1994
1995
1996
1. Net earned required contribution
and investment income
$ 1,279,550 $
1,438,193 $
1,555,612
2. Unallocated expenses
265,087
421,320
357,205
3. Estimated incurred claims and
expense, end of policy year
0
0
0
4. Paid (cumulative) as of-
End of policy year
0
0
0
One year later
0
0
0
Two years later
0
0
0
Three years later
0
0
0
Four years later
0
0
150,000
Five years later
0
0
3,150,000
Six years later
0
0
6,904,128
.
Seven years later
0
0
6,946,379
Eight years later
0
0
Nine years later
0
5. Reestimated incurred claims
and expense:
End of policy year
0
0
0
One year later
0
0
0
Two years later
0
0
0
Three years later
0
0
0
Four years later
0
0
3,089,000
Five years later
0
0
5,261,000
Six years later
0
0
8,212,128
Seven years later
0
0
8,030,267
Eight years later
0
0
Nine years later
0
6. Increase (decrease) in estimated incurred
claims and expense from the end
of the policy year
0
0
8,030,267
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1997
1998
1999
2000
2001
2002
2003
$ 1,411,415 $
1,393,815 $
1,741,861 $
1,462,539 $
1,546,330 $
1,316,531
1,054,854
289,740
243,466
155,438
195,627
178,869
295,634
433,015
0
0
0
0
0
0
505,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
352,335
0
352,335
0 0 0 0 0 0 505,000
0 0 0 0 0 0
0 0 0 0 0
0 0 0 360,000
1,010,000 0 0
352,335 0
352,335
352,335 0 0 360,000 0 0 0
-19-
MILLER COOPER & CO., LTD.