Get Reserve Requirement Reconciliation - Illinois

Completing the Reserve Requirement Reconciliation form is an essential process for ensuring compliance with state regulations. This guide provides a comprehensive overview of the form's components and step-by-step instructions to assist users in filling it out accurately and efficiently online.

Follow the steps to complete the form accurately.

1. Press the ‘Get Form’ button to access the Reserve Requirement Reconciliation form and open it in your preferred editor.
2. Begin by entering your company name at the top of the form.
3. Proceed to the section labeled 'Adjusted Loss Reserves and Loss Adjustment Expense Reserves'. Here, input the relevant data for losses, reinsurance payments on paid loss, and loss adjustment expenses as reported on your annual statement.
4. Calculate the total reported by summing the figures from the previous line items and record the result next to 'Total Reported on Annual Statement'.
5. Next, you will add back any tabular discount included in the previous total, and the discount for time value of money, labeling each appropriately.
6. Subtract the IRS discounting, if applicable, as referenced in Section 126.22 (A)(2)(b). This step is optional, and you can choose not to calculate the IRS discount.
7. Calculate the discounted loss reserves by adding the results from your previous calculations (Line 1 + Line 2 - Line 3) and note the result.
8. Enter the accrued retrospective premiums reported on your annual statement. Deduct the portion of ceded balances payable attributable to these premiums.
9. Determine the discount factor by dividing the value from the previous step by your calculated total from Line 1.
10. Multiply the discounted accrued retrospective premiums by the discount factor to get your final calculation.
11. Subtract this amount from the discounted loss reserves to arrive at the adjusted loss reserves and loss adjustment expense reserves.
12. Move to the section on adjusted unearned premium reserves. Enter the total unearned premiums reported on your annual statement.
13. Subtract any uncollected premiums, deferred premiums, and bills receivable related to premiums to compute the adjusted unearned premium reserves.
14. If your result is a negative figure, insert '0' in the field designated for adjusted unearned premiums.
15. Add the adjusted loss reserves and adjusted unearned premium reserves to calculate the total statutorily required policy and contingency reserves.
16. Finalize your calculations by ensuring that the reserve requirement does not exceed $250 million.
17. Once all fields have been filled out accurately, save your changes, download, print, or share the completed form as needed.

Complete your Reserve Requirement Reconciliation form online today to ensure compliance.