-7- January 10, 1992, and owned by petitioner and Crossroads' minority shareholders. 4. Crossroads' Annual Statements Crossroads reported on its 1991 and 1992 annual statements that it had surpluses of $6,372,038 for 1991 and $8,720,809 for 1992. a. KPMG Peat Marwick's Actuarial Reports Crossroads began using KPMG Peat Marwick as an actuary to prepare Crossroads' loss reserves around 1988. KPMG Peat Marwick also audited Crossroads' financial statements. A different office of KPMG Peat Marwick audited Gulf's financial statements. In analyzing Crossroads' reserves, KPMG Peat Marwick reviewed the following underlying claims data for each of the self-insurer funds: (i) Accident year cumulative amount of paid and incurred losses, at historical development points; (ii) accident year cumulative number of closed and reported claims, at historical development points; (iii) earned normal premium by accident year; (iv) recoveries from subrogation, second injury funds, and specific excess insurance, by accident year; and (v) all reinsurance policies with loss exposure. After reviewing the historical data, KPMG Peat Marwick: (i) Applied standard actuarial loss development techniques, includingPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011