Annual Statement - State Business Page - ICOS & IBNR

I’m trying to figure out how to properly fill out the State Business Page as it relates to In Course Of Settlement & Incurred But Not Reported liabilities…especially as it relates to count.

This is for Life Insurance, the “DIRECT DEATH BENEFITS AND MATURED ENDOWMENTS INCURRED” section, lines 16-19, the “No. of Pols & Certifs.” column.

I can count up the ICOS policies easily enough.

The previous actuary, also counted up the “current” year’s paid claims that were incurred prior to this year (i.e., died in 2019 or previous, claim was paid in 2020) and included those in the counts (i.e., a count of the IBNR).

I don’t think the IBNR count should be included…because you don’t actually know what that count is…you just have a liability which is based off a bunch of estimates and assumptions. I would think that anything that’s counted, you could point at it and say, “Look! There it is!”

The “STATE PAGE” instructions have absolutely nothing for these lines.

When I did it, we based IBNR on a % of Active Life Reserves so we could easily split that up by state. I did not include any count for IBNR though. It did look weird in some states where we had enough active life business to generate some IBNR but we had no ICOS claims. So there would be 0 outstanding claims at the end of the year but there would be a non-zero claim reserve.