Atlantic Mutual Insurance Company and Includible Subsidiaries - Page 20

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          V.  Petitioner's Position                                                   
               Consistent with this Court's holding in Western National,              
          petitioner maintains that the term "reserve strengthening" is an            
          insurance industry term of art with a clearly understood                    
          technical meaning.  As used in the insurance industry, petitioner           
          argues, "reserve strengthening" encompasses only those increases            
          in loss reserves that are attributable to nonperiodic,                      
          significant changes in the assumptions and/or methodologies used            
          to establish such loss reserves.  Because the increase in                   
          petitioner's 1986 reserves for pre-1986 accident years occurred             
          without a change in methodology, petitioner contends that the               
          increase does not constitute "reserve strengthening".                       
               Petitioner further argues that there is no need to consider            
          the legislative history to interpret the term "reserve                      
          strengthening", because the term is unambiguous.  Accordingly,              
          petitioner argues that the regulatory definition of "reserve                
          strengthening" is invalid to the extent that it treats all net              
          additions in 1986, to pre-1986 loss reserves, as "reserve                   
          strengthening".                                                             
          VI.  Analysis and Conclusion                                                
               Despite respondent's cogent arguments to the contrary, we              
          hold that petitioner's reserve increases do not constitute                  
          "reserve strengthening".  The facts of Western National are                 
          indistinguishable from the present case.  Therefore, the doctrine           
          of stare decisis leads us to the same result.  In each case, the            




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