Rev. Rul. 89-66
1989-1 C.B. 220, 1989-21 I.R.B. 13.
Internal Revenue Service
Revenue Ruling
INSURANCE COMPANIES; LOSS RESERVES; DISCOUNTING UNPAID LOSSES
Published: May 22, 1989
Section 846. - Discounted Unpaid Losses Defined
Insurance companies; loss reserves; discounting unpaid losses. The loss payment patterns and discount factors for calendar year 1989 for each property and casualty business to be used in discounting the deduction for loss reserves for purposes of section 846 of the Code.
For purposes of section 846 of the Internal Revenue Code, the following are the loss payment patterns and discount factors for calendar year 1989 for each property and casualty line of business to be used in discounting the deduction for loss reserves. Section 846 requires all property and casualty loss reserves (unpaid losses and unpaid loss adjustment expenses) for each line of business (as shown on the annual statement approved by the National Association of Insurance Commissioners (NAIC)) to be discounted for federal income tax purposes. The discount factors were determined by using an interest rate for 1989 of 8.16 percent, the interest rate determined under section 846(c).
DRAFTING INFORMATION
The principal author of this revenue ruling is Katherine A. Hossofsky of the Office of Assistant Chief Counsel (Financial Institutions & Products). For further information regarding this revenue ruling contact Katherine Ann Hossofsky on (202) 566-3458 (not a toll-free call).
COMPOSITE SCHEDULE P
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 27050900 78832067 34.3146
AY + 1 1984 42762165 70059326 61.0371
AY + 2 1983 46304723 62932278 73.5787
AY + 3 1982 46339283 56724398 81.6920
AY + 4 1981 44014354 50826873 86.5966
AY + 5 1980 41790830 46281924 90.2962
AY + 6 1979 38531049 41768331 92.2494
AY + 7 1978 33285121 35572301 93.5703
AY + 8 1977 29524057 31225532 94.5510
AY + 9 1976 26745914 28167858 94.9519
AY + 10 Pre 1976 184257188 188825255 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Composite Schedule P continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 34.3146 65.6854 54.4457 82.8886
AY + 1 26.7225 38.9629 31.0971 89.8120
AY + 2 12.5416 26.4213 20.5914 77.9346
AY + 3 8.1133 18.3080 13.8338 75.5613
AY + 4 4.9046 13.4034 9.8618 73.5769
AY + 5 3.6996 9.7038 6.8189 70.2708
AY + 6 1.9532 7.7506 5.3440 68.9500
AY + 7 1.3209 6.4297 4.4063 68.5315
AY + 8 0.9807 5.4490 3.7460 68.7467
AY + 9 0.4009 5.0481 3.6348 72.0024
AY + 10 0.4009 4.6472 3.5144 75.6244
AY + 11 0.4009 4.2464 3.3843 79.6992
AY + 12 0.4009 3.8455 3.2436 84.3473
AY + 13 0.4009 3.4446 3.0913 89.7439
AY + 14 0.4009 3.0437 2.9267 96.1538
AY + 15 3.0437 0.0000 0.0000 96.1538
AUTOMOBILE LIABILITY
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 10734519 31281287 34.3161
AY + 1 1984 18397279 28217053 65.1992
AY + 2 1983 20047428 24986353 80.2335
AY + 3 1982 19808529 22243403 89.0535
AY + 4 1981 18974882 20225872 93.8149
AY + 5 1980 17105852 17717213 96.5493
AY + 6 1979 16266022 16633374 97.7915
AY + 7 1978 14534843 14766868 98.4287
AY + 8 1977 12853464 13027563 98.6636
AY + 9 1976 11389407 11506437 98.9829
AY + 10 Pre 1976 91306371 91545592 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
(Automobile Liability continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 34.3161 65.6839 57.7769 87.9621
AY + 1 30.8830 34.8008 30.3732 87.2770
AY + 2 15.0344 19.7665 17.2159 87.0962
AY + 3 8.8200 10.9465 9.4479 86.3097
AY + 4 4.7614 6.1851 5.2670 85.1560
AY + 5 2.7344 3.4507 2.8530 82.6785
AY + 6 1.2421 2.2085 1.7939 81.2278
AY + 7 0.6373 1.5713 1.2776 81.3082
AY + 8 0.2349 1.3364 1.1375 85.1211
AY + 9 0.3193 1.0171 0.8983 88.3206
AY + 10 0.3193 0.6978 0.6395 91.6505
AY + 11 0.3193 0.3785 0.3596 95.0199
AY + 12 0.3193 0.0592 0.0569 96.1538
AY + 13 0.0592 0.0000 0.0000 96.1538
OTHER LIABILITY
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 824218 8957695 9.2012
AY + 1 1984 1752555 6901148 25.3951
AY + 2 1983 2493908 6222045 40.0818
AY + 3 1982 3181315 5762517 55.2070
AY + 4 1981 3429366 5180556 66.1969
AY + 5 1980 3548964 4724863 75.1125
AY + 6 1979 3339115 4162493 80.2191
AY + 7 1978 3050437 3610079 84.4978
AY + 8 1977 2812829 3245716 86.6628
AY + 9 1976 2702169 3081827 87.6807
AY + 10 Pre 1976 23480898 25101360 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Other Liability continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 9.2012 90.7988 67.6821 74.5408
AY + 1 16.1939 74.6049 56.3634 75.5492
AY + 2 14.6867 59.9182 45.6885 76.2514
AY + 3 15.1252 44.7930 33.6864 75.2047
AY + 4 10.9898 33.8031 25.0058 73.9748
AY + 5 8.9157 24.8875 17.7740 71.4174
AY + 6 5.1066 19.7809 13.9135 70.3380
AY + 7 4.2787 15.5022 10.5990 68.3709
AY + 8 2.1650 13.3372 9.2122 69.0719
AY + 9 1.0179 12.3193 8.9053 72.2878
AY + 10 1.0179 11.3013 8.5733 75.8614
AY + 11 1.0179 10.2834 8.2143 79.8791
AY + 12 1.1079 9.2655 7.8259 84.4634
AY + 13 1.1079 8.2475 7.4059 89.7950
AY + 14 1.1079 7.2296 6.9515 96.1538
AY + 15 7.2296 0.0000 0.0000 96.1538
WORKERS' COMPENSATION
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 3932938 15174769 25.9176
AY + 1 1984 7635807 14004437 54.5242
AY + 2 1983 8124465 11973169 67.8556
AY + 3 1982 8126215 10749254 75.5979
AY + 4 1981 8203632 10245226 80.0727
AY + 5 1980 7893190 9444281 83.5764
AY + 6 1979 7559441 8845526 85.4606
AY + 7 1978 6621807 7594942 87.1871
AY + 8 1977 5981586 6744498 88.6884
AY + 9 1976 5510811 6170361 89.3110
AY + 10 Pre 1976 46351166 48577936 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Workers' Compensation continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 25.9176 74.0824 58.6978 79.2331
AY + 1 28.6066 45.4758 33.7367 74.1860
AY + 2 13.3314 32.1444 22.6249 70.3853
AY + 3 7.7423 24.4021 16.4191 67.2857
AY + 4 4.4748 19.9273 13.1051 65.7647
AY + 5 3.5037 16.4236 10.5307 64.1192
AY + 6 1.8842 14.5394 9.4304 64.8610
AY + 7 1.7264 12.8129 8.4044 65.5932
AY + 8 1.5013 11.3116 7.5288 66.5585
AY + 9 0.6226 10.6890 7.4957 70.1251
AY + 10 0.6226 10.0664 7.4598 74.1060
AY + 11 0.6226 9.4438 7.4210 78.5809
AY + 12 0.6226 8.8211 7.3790 83.6515
AY + 13 0.6226 8.1985 7.3336 89.4505
AY + 14 0.6226 7.5759 7.2845 96.1538
AY + 15 7.5759 0.0000 0.0000 96.1538
MEDICAL MALPRACTICE
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 85689 2835465 3.0220
AY + 1 1984 312207 2404595 12.9838
AY + 2 1983 534322 2280478 23.4303
AY + 3 1982 745691 2095689 35.5821
AY + 4 1981 836834 1839826 45.4844
AY + 5 1980 846392 1574497 53.7563
AY + 6 1979 800223 1316417 60.7880
AY + 7 1978 745973 1109154 67.2560
AY + 8 1977 639578 883594 72.3837
AY + 9 1976 627818 835753 75.1200
AY + 10 Pre 1976 1959501 2323449 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
AY + 13 NA NA NA NA
AY + 14 NA NA NA NA
AY + 15 NA NA NA NA
(Medical Malpractice continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 3.0220 96.9780 64.0702 66.0668
AY + 1 9.9617 87.0162 58.9382 67.7324
AY + 2 10.4465 76.5697 52.8831 69.0653
AY + 3 12.1519 64.4179 44.5605 69.1741
AY + 4 9.9023 54.5156 37.8982 69.5182
AY + 5 8.2719 46.2437 32.3879 70.0375
AY + 6 7.0316 39.2120 27.7179 70.6872
AY + 7 6.4681 32.7440 23.2529 71.0142
AY + 8 5.1277 27.6163 19.8175 71.7603
AY + 9 2.7363 24.8800 18.5889 74.7142
AY + 10 2.7363 22.1436 17.2599 77.9453
AY + 11 2.7363 19.4073 15.8225 81.5288
AY + 12 2.7363 16.6709 14.2678 85.5851
AY + 13 2.7363 13.9346 12.5863 90.3242
AY + 14 2.7363 11.1982 10.7675 96.1538
AY + 15 11.1982 0.0000 0.0000 96.1538
FARMOWNERS MULTIPLE PERIL, HOMEOWNERS MULTIPLE PERIL, COMMERCIAL
MULTIPLE PERIL, OCEAN MARINE, AIRCRAFT (ALL PERILS) AND BOILER
AND MACHINERY
Total Cumulative
Year Loss & loss losses and loss fraction of
Years before loss expense payments expense incurred loss paid
current year incurred to date (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 11473534 20582849 55.7432
AY + 1 1984 14664316 18532075 79.1294
AY + 2 1983 15104598 17470233 86.4591
AY + 3 1982 14477532 15873533 91.2055
AY + 4 1981 12569638 13335391 94.2577
AY + 5 1980 12396429 12821063 96.6880
AY + 6 1979 10566246 10810520 97.7404
AY + 7 1978 8332059 8491257 98.1252
AY + 8 1977 7236609 7324158 98.8047
AY + 9 1976 6515706 6573477 99.1212
AY + 10 Pre 1976 21159251 21276916 NA
AY + 11 NA NA NA NA
AY + 12 NA NA NA NA
(Farmowners Multiple Peril continued)
Fraction of Fraction of Discounted Reserve
loss paid loss unpaid, fraction discount
Years before during year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 55.7432 44.2568 38.7743 87.6120
AY + 1 23.3862 20.8706 17.6166 84.4086
AY + 2 7.3297 13.5409 11.4313 84.4200
AY + 3 4.7464 8.7945 7.4278 84.4590
AY + 4 3.0523 5.7423 4.8595 84.6274
AY + 5 2.4303 3.3120 2.7286 82.3850
AY + 6 1.0524 2.2596 1.8567 82.1715
AY + 7 0.3847 1.8748 1.6081 85.7731
AY + 8 0.6795 1.1953 1.0327 86.3897
AY + 9 0.3165 0.8788 0.7878 89.6358
AY + 10 0.3165 0.5624 0.5229 92.9823
AY + 11 0.3165 0.2459 0.2364 96.1538
AY + 12 0.2459 0.0000 0.0000 96.1538
FIRE
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 1182445 2142829 55.1815
AY + 1 1984 687222 944426 72.7661
AY + 2 Pre 1984 196764 462600 NA
AY + 3 NA NA NA NA
(Fire continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 55.1815 44.8185 41.8006 93.2650
AY + 1 32.6127 12.2058 11.2937 92.5267
AY + 2 6.1029 6.1029 5.8682 96.1538
AY + 3 6.1029 0.0000 0.0000 96.1538
ALLIED LINES
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 657907 1076282 61.1278
AY + 1 1984 297197 388220 76.5538
AY + 2 Pre 1984 77676 174175 NA
AY + 3 NA NA NA NA
(Allied Lines continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 61.1278 38.8722 36.4104 93.6667
AY + 1 29.7582 9.1141 8.4330 92.5267
AY + 2 4.5570 4.5570 4.3818 96.1538
AY + 3 4.5570 0.0000 0.0000 96.1538
INLAND MARINE
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 1101567 1913177 57.5779
AY + 1 1984 562321 731477 76.8747
AY + 2 Pre 1984 140515 321225 NA
AY + 3 NA NA NA NA
(Inland Marine continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 57.5779 42.4221 39.7499 93.7008
AY + 1 32.6119 9.8102 9.0771 92.5267
AY + 2 4.9051 4.9051 4.7165 96.1538
AY + 3 4.9051 0.0000 0.0000 96.1538
MISCELLANEOUS CASUALTY
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 185443 216664 85.5901
AY + 1 1984 12581 14861 84.6578
AY + 2 Pre 1984 1729 4100 NA
AY + 3 NA NA NA NA
(Miscellaneous Casualty continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 85.5901 4.4099 13.6211 94.5264
AY + 1 12.1991 2.2108 2.0456 92.5267
AY + 2 1.1054 1.1054 1.0629 96.1538
AY + 3 1.1054 .0000 0.0000 96.1538
EARTHQUAKE
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 3852 13974 27.5655
AY + 1 1984 1654 3010 54.9502
AY + 2 Pre 1984 722 1757 NA
AY + 3 NA NA NA NA
(Earthquake continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 27.5655 72.4345 66.1871 91.3751
AY + 1 39.8029 32.6316 30.1930 92.5267
AY + 2 16.3158 16.3158 15.6883 96.1538
AY + 3 16.3158 0.0000 0.0000 96.1538
AUTO PHYSICAL DAMAGE
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 1387675 16695051 83.1190
AY + 1 1984 1743502 1864945 93.4881
AY + 2 Pre 1984 -128871 -44115 NA
AY + 3 NA NA NA NA
(Auto Physical Damage continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 83.1190 16.8810 16.1151 95.4631
AY + 1 15.7817 1.0993 1.0171 92.5267
AY + 2 0.5496 0.5496 0.5285 96.1538
AY + 3 0.5496 0.0000 0.0000 96.1538
FIDELITY
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 63993 281102 22.7650
AY + 1 1984 108652 212771 51.0652
AY + 2 Pre 1984 76630 196869 NA
AY + 3 NA NA NA NA
(Fidelity continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 22.7650 77.2350 70.2552 90.9630
AY + 1 39.4402 37.7947 34.9702 92.5267
AY + 2 18.8974 18.8974 18.1706 96.1538
AY + 3 18.8974 0.0000 0.0000 96.1538
SURETY
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 322557 869869 37.0811
AY + 1 1984 221719 418289 53.0062
AY + 2 Pre 1984 29380 252418 NA
AY + 3 NA NA NA NA
(Surety continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 37.0811 62.9189 57.3625 91.1689
AY + 1 33.3509 29.5680 27.3583 92.5267
AY + 2 14.7840 14.7840 14.2154 96.1538
AY + 3 14.7840 0.0000 0.0000 96.1538
GLASS
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 5330 8021 66.4506
AY + 1 1984 1482 1703 87.0229
AY + 2 Pre 1984 145 518 NA
AY + 3 NA NA NA NA
(Glass continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 66.4506 33.5494 31.7972 94.7773
AY + 1 29.1957 4.3537 4.0284 92.5267
AY + 2 2.1769 2.1769 2.0931 96.1538
AY + 3 2.1769 0.0000 0.0000 96.1538
BURGLARY AND THEFT
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 16947 35142 48.2243
AY + 1 1984 10304 13001 79.2554
AY + 2 Pre 1984 3182 8093 NA
AY + 3 NA NA NA NA
(Burglary and Theft continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 48.2243 51.7757 48.6450 93.9533
AY + 1 41.0350 10.7406 9.9380 92.5267
AY + 2 5.3703 5.3703 5.1638 96.1538
AY + 3 5.3703 0.0000 0.0000 96.1538
CREDIT
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 54286 218630 24.8301
AY + 1 1984 52253 126369 41.3495
AY + 2 Pre 1984 9995 43661 NA
AY + 3 NA NA NA NA
(Credit continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0 24.8301 75.1699 67.6021 89.9324
AY + 1 31.0824 44.0875 40.7927 92.5267
AY + 2 22.0438 22.0438 21.1959 96.1538
AY + 3 22.0438 0.0000 0.0000 96.1538
CREDIT ACCIDENT AND HEALTH (Group and Individual)
Unpaid losses Fraction of
Year Net losses beginning unpaid loss
Years before loss paid in year of year paid in year
current year incurred (000s) (000s) (percent)
____________ ________ ________________ ________________ ___________
AY + 0 1985 50544 93229 54.2149
AY + 1 1984 26637 42512 62.6576
AY + 2 Pre 1984 8295 18171 NA
AY + 3 NA NA NA NA
(Credit Accident and Health continued)
Fraction of Fraction of Discounted Reserve
total loss loss unpaid, fraction discount
Years before paid in year year-end unpaid, year- factor
current year (percent) (percent) end (percent) (percent)
____________ ___________ ____________ _____________ _________
AY + 0
Rev. Rul. 89-66, 1989-1 C.B. 220, 1989-21 I.R.B. 13.