Physicians Insurance Company of Wisconsin, Inc. and Subsidiaries - Page 31




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          Tillinghast had already considered in its actuarial analyses.18             
          To the contrary, Maurer testified that “many of these items were            
          discussed with Tillinghast at one time or another.”  Maurer                 
          testified that Tillinghast “did know, in general terms, about               
          some of the factors we were considering” in arriving at their               
          increments to Tillinghast’s point estimates.   Maurer testified             
          that although he looked at the Tillinghast reports, “I did not              
          look specifically at their methodologies or their selections”.              
          In his testimony, Maurer was unable to confirm that Tillinghast             
          ever checked to see whether the “qualitative factors” might have            
          already been factored into the Tillinghast point estimates.                 
               In its representation letters to Tillinghast, petitioner               
          represented that it had disclosed to Tillinghast all factors that           
          would materially affect loss reserves.  Kurt Reichle (Reichle),             
          Tillinghast’s appointed actuary for petitioner during the years             
          in issue, testified that Tillinghast relied on these letters to             
          be accurate and complete and stated that he could not recall that           




               18 Moreover, if we were to assume, for the sake of argument,           
          that Tillinghast declined to consider some of these factors in              
          its actuarial analyses, petitioner has failed to show that                  
          Tillinghast acted improperly in this regard.  We are unpersuaded            
          that all of these “qualitative factors” should have been                    
          considered in estimating petitioner’s unpaid losses for the years           
          in issue.  For instance, because petitioner did business only in            
          Wisconsin during the years in issue, it is unclear why                      
          uncertainty regarding business in “new states” should enter into            
          the estimation of unpaid losses for the years in issue.                     





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