Interrogatory 7 topics cover changes or anything special that the user needs to be aware of if she relies on the Schedule P data to assess the adequacy of recorded loss & LAE reserves. Which statement best captures this idea?

• A. Interrogatory 7 addresses changes and special considerations when relying on Schedule P data
• B. Interrogatory 2 addresses LAE definitions only
• C. Interrogatory 4 addresses non-tabular discounts
• D. Interrogatory 6 addresses claim counts reporting

Answer: (A)

When you’re using Schedule P data to judge the adequacy of recorded loss and LAE reserves, the key idea is that the data you rely on can change for reasons beyond the true reserve level. You need to know what changes or special considerations apply to Schedule P data—such as revisions, reclassifications, changes in reporting or methodology, and timing differences—that could affect interpretation and comparability year to year. This is exactly what Interrogatory 7 addresses, making it the best choice because it directly states the need to be aware of changes when relying on Schedule P data. The other options refer to topics (LAE definitions, non-tabular discounts, claim counts reporting) that don’t capture that specific caveat about Schedule P data used for reserve adequacy.