| Comment | Response |
|---|---|
| One commentator suggested removing “purpose or use of the unpaid claim estimate” from the list. | The reviewers believe the current discussion is appropriate and did not make this change because different estimates may be appropriate depending on the intended use. |
| One commentator suggested adding “as appropriate” after “using incurral and processing dates.” | The reviewers agree this improves clarity and made the change. |
| Comment | Response |
|---|---|
| One commentator suggesting adding a caveat to address situations when, for example, a consulting actuary’s review is limited to the unpaid claims liabilities reserve. | The reviewers believe the use of consistent assumptions and methodology are also appropriate in this situation and made no change. |
| One commentator suggested clarifying the meaning of “bases” and “related liabilities and reserves.” | To improve clarity of meaning, the reviewers changed consistent basis to consistent assumptions and methodology, and included the example of claim settlement expense reserves. |
| Comment | Response |
|---|---|
| Several commentators suggested adding detail specific to certain estimation methods, for example considerations regarding categories of incurred claims that would be specific to the development method. | The reviewers note that this section is intentionally broad because of the variety of estimation methods in use, and made changes intended to clarify this point. |
| Comment | Response |
|---|---|
| One commentator suggested noting that large claims could result in an understatement. | The reviewers believe overstatement is an appropriate example in this context and did not make this change. |
| Comment | Response |
|---|---|
| One commentator noted that section 3.21. uses “reasonable effort.” | The reviewers agree that there is not intended to be a difference in the meaning and added “reasonable effort.” |
| Comment | Response |
|---|---|
| Two commentators requested clarity on the definitions of “material” and “disclosure.” | The reviewers note that materiality is defined in ASOP No. 1, Introductory Standard of Practice, and that section 4 of this standard refers to disclosure in an actuarial communication. |
