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Biscoglia, not Mr. Klaassen, served in the function of
Parthenon's consulting actuary for purposes of computing
recommended unpaid losses reserves for the 1986 policy year.
Mr. Merlino's challenge to the reasonableness of the unpaid
losses reserves Parthenon claimed for the year ended 1986 is
focused on the variance between the amount Parthenon reported on
its annual statement for that year and the amount recommended by
the consulting actuary. The $238 million unpaid losses reserve
Parthenon reported for the year ended 1986 for professional and
general liabilities is within the range of reasonable reserves
recommended by Mr. Biscoglia for that year. Mr. Merlino did not
challenge the unpaid losses reserves for any other line of
business carried by Parthenon. Accordingly, the adjustment to
the unpaid losses reserves proposed by Mr. Merlino for the year
ended 1986 finds no support in the record.
Respondent's other arguments relating to the reasonableness
of the unpaid losses reserves for the 1986 policy year are
irrelevant in light of the parties' stipulation that: "In the
event that the Court concludes [which we have] that Parthenon is
an insurance company, the parties have agreed on all adjustments
to reserves except for the single issue whether all or any
portion of the reserve adjustments proposed by respondent's
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