The early termination of a reinsurance contract is known as commutation. It releases the reinsurer of its present and future obligations under the original reinsurance agreement for a negotiated consideration as a complete and final settlement. Why commute and how … Continued
Author Archives: Ani Zadorian, CPA
ASU 2015-09 is about enhanced disclosure, and while it lays out certain requirements for presentation and provides examples of what the disclosure might look like, it also leaves a high degree of discretion to insurers to determine how and what information best meets with the spirit and intent of the standard. By now you know ASU 2015-09 requires disclosure of development data for short duration contracts.
Reinsurance agreements must contain the element of risk transfer where the reinsurer assumes significant insurance risk and may realize a significant loss from the transaction. However, there is an exception to these rules. In the following example, we demonstrate the “substantially all” exception to the essential elements of risk transfer.
Aetna, UnitedHealth, Humana and many other significant players in the health insurance market are pulling out of the Affordable Care Act (ACA) exchanges and many consumers are left seeking new plans.
The Franklin Circuit Court has issued an Order authorizing the Commissioner of the Kentucky Department of Insurance (“KDOI”) to liquidate Kentucky Health Cooperative, Inc. (“KYHC” or “co-op”). KYHC was placed into rehabilitation on October 29, 2015 with oversight of the day-to-day … Continued
Consumer Operated and Oriented Plan insurers (“co-ops”) are gradually going out of business. The Affordable Care Act (the “ACA”) in 2011 funded co-ops with $2.4 billion under a federal grant and loan program. Recently it was reported that 12 of … Continued