Which item is listed in the Loss Reserve section of Exhibit A: SCOPE?

• A. Reserve for unpaid losses
• B. Reserve for D&A unearned premium for long duration contracts
• C. Retroactive reinsurance reserve assumed
• D. Other premium reserve items on which actuary is expressing opinion

Answer: (B)

The loss reserve area focuses on liabilities for losses and loss-adjustment expenses that have occurred but aren’t yet paid, including how long-duration contracts connect premiums to future coverage and potential future payments. For long-duration contracts, a portion of the premium covers future periods, so the unearned premium related to those contracts is treated as part of the loss-reserve scope in Exhibit A: SCOPE. That’s why the item “Reserve for D&A unearned premium for long duration contracts” is the one listed in the Loss Reserve section. The other items typically align with different reserve categories or specific reinsurance considerations rather than the direct loss-and-LAE reserves intended to be reported in this section.