- 93 -
In his report, Mr. Merlino recommends adjustments to
Parthenon's workers' compensation unpaid losses reserves and
professional and general liabilities reserves to conform those
reserves to the amounts recommended by Mr. Biscoglia. Respondent
has adopted Mr. Merlino's position to support the Government's
position. We deem that action to be a concession by respondent
that the values recommended by Mr. Biscoglia for the unpaid
losses reserves for workers' compensation and professional and
general liabilities are a fair and reasonable estimate of
Parthenon's actual unpaid losses for those lines of business for
years ended 1987 and 1988. In his report Mr. Merlino proposes no
adjustment to the unpaid losses reserves for other lines of
business carried by Parthenon for years ended 1987 and 1988. We
deem that inaction as a concession by respondent that the
reserves for those lines of business are a fair and reasonable
estimate of Parthenon's actual unpaid losses for those lines of
business for those years. We conclude that Parthenon is entitled
to deduct additions to its reserves for the years in issue in
amounts to be calculated by the parties in accordance with their
stipulations and the foregoing.
Additionally, respondent contends that petitioners have
failed to substantiate their claims regarding the reserves in
Page: Previous 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 NextLast modified: May 25, 2011