-37-
Similarly, for petitioner’s 1994 and 1995 years, Teufel
provided a “selected point estimate” that was significantly
lower than petitioner’s carried net reserves. For each of these
years, Teufel also provided a recommended range. Relative to
the recommended range of the taxpayer’s actuary in Utah Medical,
Teufel’s recommended ranges are very large.26 The evidence in
the record is insufficient for us to evaluate adequately whether
Teufel’s recommended ranges are so large as to be unreasonable,
or whether every point in each recommended range would satisfy
the requirement that the determination of unpaid losses
25(...continued)
Commissioner, T.C. Memo. 1994-545.
At trial, respondent raised a hearsay objection to the
admission into evidence of the actuaries’ opinions and reports.
The Court overruled the objection but invited respondent to renew
his objection on brief. Respondent has not done so. We conclude
that respondent has abandoned his objection. In any event,
respondent’s objection is without merit, as petitioner presented
adequate foundation testimony to qualify the actuarial opinions
and reports as business records. See Fed. R. Evid. 803(6).
Furthermore, respondent’s expert witness stated that he relied
upon the actuarial reports as one of four primary sources of
information, from which we conclude that respondent’s own expert
deemed the information therein to be trustworthy.
26 In Utah Med. Ins. Association v. Commissioner, T.C. Memo.
1998-458, we accepted the reserves carried by the taxpayer even
though they were near the upper limit of the actuary's range. We
characterized the actuary's range as large, but not so large as
to be unreasonable. See id. The upper limit of the actuary's
range in Utah Medical was approximately 26 percent above the
lower limit of the range for each year in issue. In the instant
case, by contrast, for 1994 the upper limit of Teufel’s
recommended range was approximately 70 percent higher than the
lower limit, and for 1995 the upper limit was approximately 120
percent higher than the lower limit.
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