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Legacy Liabilities and Modeling
By Steve Streff
Streff Insurance Services
Most insurance companies carry reserves for lines or coverages that have been inactive for many years. Sometimes these reserves relate to old assumed reinsurance treaties. Other times they're for coverages that were not excluded in policy language because no one imagined that such risks were insurable. Asbestos liabilities have gained new life in recent years and are one of the few dark clouds over a healthy insurance industry.
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