-20- gross and net reserve point estimates) are shown below (in millions of dollars): Estimates of Reinsurance Proceeds Recoverable Petitioner’s Actuaries’ Year Estimate Estimate 1993 $4.397 $6.9 1994 4.507 4.804 1995 4.255 5.863 Petitioner’s Tax Returns and Respondent’s Determinations Petitioner timely filed Forms 1120PC, U.S. Property and Casualty Insurance Company Income Tax Return, for 1993, 1994, and 1995. Respondent determined that for each year petitioner overstated its unpaid losses for professional liability insurance.17 The following table shows the unpaid losses outstanding at yearend (net of reinsurance and before discounting) on professional liability insurance, as reported by petitioner and as allowed by respondent for each year in issue: Year Reported by petitioner Allowed by respondent 1993 $11,663,000 $7,134,000 1994 11,576,000 5,531,000 1995 12,490,000 5,010,000 17 For each year in issue, petitioner also claimed losses incurred with respect to its commercial multiple peril policies, as follows: 1993-–$3,000; 1994-–$5,000; and 1995--$9,000. Respondent did not adjust the unpaid losses claimed by petitioner on these policies.Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: May 25, 2011