Florida Statutes 628.912 – Discounting of loss and loss adjustment expense reserves
Current as of: 2023 | Check for updates
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Terms Used In Florida Statutes 628.912
- Captive reinsurance company: means a reinsurance company that is formed and licensed under this part and is wholly owned by a qualifying reinsurance parent company. See Florida Statutes 628.901
- Office: means the Office of Insurance Regulation. See Florida Statutes 628.901
- Treasury rates: means the United States Treasury STRIPS asked yield as published in the Wall Street Journal as of a balance sheet date. See Florida Statutes 628.901
(1) A captive reinsurance company may discount its loss and loss adjustment expense reserves at treasury rates applied to the applicable payments projected through the use of the expected payment pattern associated with the reserves.
(2) A captive reinsurance company must file annually an actuarial opinion on loss and loss adjustment expense reserves provided by an independent actuary. The actuary may not be an employee of the captive reinsurance company or its affiliates.
(3) The office may disallow the discounting of reserves if a captive reinsurance company violates a provision of this part.