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Allowance for Expected Credit Losses | 9 Months Ended
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Sep. 30, 2020
Credit Loss [Abstract] |
Allowance for expected credit losses | Allowance for Expected Credit Losses Premiums Receivable The following table provides a roll forward of the allowance for expected credit losses of the Company’s premium receivables:
|  | September 30, 2020
|  | Premium Receivables, Net of Allowance |  | Allowance for Expected Credit Losses |
Three Months Ended |  |  |  |  |
Balance at beginning of period |  | $ | 2,203,753 |  |  | $ | 36,054 |  |
Cumulative effect of accounting change (1) |  |  |  | — |  |
Change for provision of expected credit losses (2) |  |  |  | 1,046 |  |
Balance at end of period |  | $ | 2,225,311 |  |  | $ | 37,100 |  |
Nine Months Ended |  |  |  |  |
Balance at beginning of period |  | $ | 1,778,717 |  |  | $ | 21,003 |  |
Cumulative effect of accounting change (1) |  |  |  | 6,539 |  |
Change for provision of expected credit losses (2) |  |  |  | 9,558 |  |
Balance at end of period |  | $ | 2,225,311 |  |  | $ | 37,100 |  |
(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)” See note 1. (2) Amounts deemed uncollectible are written-off in operating expenses. For the 2020 third quarter and nine months ended September 30, 2020, amounts written off totaled nil and $2.3 million, respectively. Reinsurance Recoverables The following table provides a roll forward of the allowance for expected credit losses of the Company’s reinsurance recoverables:
|  | September 30, 2020
|  | Reinsurance Recoverables, Net of Allowance |  | Allowance for Expected Credit Losses |
Three Months Ended |  |  |  |  |
Balance at beginning of period |  | $ | 4,363,507 |  |  | $ | 13,595 |  |
Cumulative effect of accounting change (1) |  |  |  | — |  |
Change for provision of expected credit losses |  |  |  | 399 |  |
Balance at end of period |  | $ | 4,621,937 |  |  | $ | 13,994 |  |
Nine Months Ended |  |  |  |  |
Balance at beginning of period |  | $ | 4,346,816 |  |  | $ | 1,364 |  |
Cumulative effect of accounting change (1) |  |  |  | 12,010 |  |
Change for provision of expected credit losses |  |  |  | 620 |  |
Balance at end of period |  | $ | 4,621,937 |  |  | $ | 13,994 |  |
(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)” See note 1. At September 30, 2020 and December 31, 2019, approximately 63.2% and 61.2% of reinsurance recoverables on paid and unpaid losses (not including ceded unearned premiums) of $4.64 billion and $4.35 billion, respectively, were due from carriers which had an A.M. Best rating of “A-” or better while 36.6% and 38.8%, respectively, were from companies not rated. For items not rated, over 90% of such amount was collateralized through reinsurance trusts or letters of credit at September 30, 2020 and December 31, 2019. The largest reinsurance recoverables from any one carrier were approximately 1.8% and 1.7%, of total shareholders’ equity available to Arch at September 30, 2020 and December 31, 2019, respectively. Contractholder Receivables The following table provides a roll forward of the allowance for expected credit losses of the Company’s contractholder receivables:
|  | September 30, 2020
|  | Contractholder Receivables, Net of Allowance |  | Allowance for Expected Credit Losses |
Three Months Ended |  |  |  |  |
Balance at beginning of period |  | $ | 2,179,124 |  |  | $ | 6,290 |  |
Cumulative effect of accounting change (1) |  |  |  | — |  |
Change for provision of expected credit losses |  |  |  | (389) |  |
Balance at end of period |  | $ | 2,185,614 |  |  | $ | 5,901 |  |
Nine Months Ended |  |  |  |  |
Balance at beginning of period |  | $ | 2,119,460 |  |  | $ | — |  |
Cumulative effect of accounting change (1) |  |  |  | 6,663 |  |
Change for provision of expected credit losses |  |  |  | (762) |  |
Balance at end of period |  | $ | 2,185,614 |  |  | $ | 5,901 |  |
(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)” See note 1.

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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- References No definition available. + Details
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