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Liability for Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2020

Insurance Loss Reserves [Abstract]

Summary of Incurred Claims, Cumulative Paid Claims and Allocated Claim Adjustments Expenses, Net of Reinsurance

The information about unpaid losses and loss adjustment expenses for the years ended December 31, 2016 to 2019, is presented as supplementary information and is unaudited.

																																				As of December 31, 2020
																																				Total of IBNR
																																				Plus Expected
Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance																																				Development (Redundancy)						Cumulative Number
For the Years Ended December 31,																																				on Reported Claims						of Reported Claims
Accident Year						2016 *						2017 *						2018 *						2019 *						2020
2016						$	269,814					$	286,252					$	324,577					$	351,487					$	362,155					$	628					40,568
2017												303,944						334,734						375,123						404,673						5,128						132,576
2018																		334,368						335,946						348,792						(1,444)						54,185
2019																								446,419						452,029						(2,589)						47,437
2020																														617,795						102,141						76,800
																								Total						$	2,185,444

Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance
For the Years Ended December 31,
Accident Year						2016 *						2017 *						2018 *						2019 *						2020
2016						$	204,122					$	297,374					$	328,286					$	349,837					$	361,067
2017												205,200						328,105						365,588						397,509
2018																		253,008						327,310						348,225
2019																								335,991						446,997
2020																														452,560
																								Total						$	2,006,358
All outstanding liabilities before 2016, net of reinsurance																														28
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance																														$	179,114
* Presented as unaudited required supplementary information.

Supplementary Information About Average Historical Claims Duration

Set forth is the supplementary information about average historical claims duration as of December 31, 2020:

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance *
Years						1						2						3						4						5
						60.6		%				18.9		%				10.1		%				5.2		%				2.7		%

Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and LAE

Set forth is the following reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and LAE in the consolidated Balance Sheet as of December 31, 2020 (in thousands):

			December 31, 2020
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance			$	179,114
Reinsurance recoverable on unpaid claims			119,522
Liabilities for adjusting and other claim payments			23,829
Total gross liability for unpaid claims and claim adjustment expense			$	322,465

Change in Liability for Unpaid Losses and LAE

Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands):

						Years Ended December 31,
						2020						2019						2018
Balance at beginning of year						$	267,760					$	472,829					$	248,425
Less: Reinsurance recoverable						(123,221)						(393,365)						(182,405)
Net balance at beginning of period						144,539						79,464						66,020
Incurred (recovered) related to:
Current year						700,473						515,338						314,933
Prior years						58,337						88,068						99,522
Total incurred						758,810						603,406						414,455
Paid related to:
Current year						513,308						391,161						221,708
Prior years						187,098						147,170						179,303
Total paid						700,406						538,331						401,011
Net balance at end of period						202,943						144,539						79,464
Plus: Reinsurance recoverable						119,522						123,221						393,365
Balance at end of year						$	322,465					$	267,760					$	472,829

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- References

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Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 40
-Section 50
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Tabular disclosure of undiscounted information about claims development by accident year for short-duration insurance contracts.

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-Publisher FASB
-Name Accounting Standards Codification
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Tabular disclosure for the reconciliation of claims development to the liability for unpaid claims and claim adjustment expense for short-duration insurance contracts.

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Tabular disclosure of average annual percentage payout of incurred claims by age, after reinsurance, for short-duration insurance contracts.

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