SECTION 3. TABLES — Internal Revenue Bulletin 2001-53

FACTORS

.01 The following tables present separately for each line of business the discount factors under § 846 for accident year 2001. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2001, which is 6.00 percent, and by assuming all loss payments occur in the middle of the calendar year.

.02 If the groupings of individual lines of business on the annual statement change, taxpayers must discount the unpaid losses on the affected lines of business in accordance with the discounting patterns that would have applied to those unpaid losses based on their classification on the 1995 annual statement. See Rev. Proc. 98–11 (1998–1 C.B. 358)

Accident and Health (Other Than Disability Income or Credit Disability Insurance)

Discount factor for all years equals 97.1286 percent.

Auto Physical Damage

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+ 0 89.9430 89.9430 10.0570 9.7182 96.6309 AY+ 1 99.3814 9.4384 0.6186 0.5838 94.3797 AY+ 2 N/A 0.3093 0.3093 0.3004 97.1286

Commercial Auto/Truck Liability/Medical

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 25.8075 25.8075 74.1925 65.3144 88.0336

AY+1 49.8793 24.0718 50.1207 44.4497 88.6854

December 31, 2001 643 2001–53 I.R.B.

Commercial Auto/Truck Liability/Medical—Continued

Estimated

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Factors

Tax Year

Cumulative Losses Paid

(%)

AY+2 67.6592 17.7799 32.3408 28.8112 89.0862 AY+3 79.7711 12.1119 20.2289 18.0699 89.3272 AY+4 88.2132 8.4421 11.7868 10.4624 88.7640 AY+5 93.1778 4.9646 6.8222 5.9788 87.6375 AY+6 95.9623 2.7845 4.0377 3.4707 85.9577 AY+7 97.0091 1.0468 2.9909 2.6012 86.9707 AY+8 97.5719 0.5628 2.4281 2.1778 89.6931 AY+9 98.2191 0.6471 1.7809 1.6422 92.2109

AY+10 N/A 0.6471 1.1338 1.0745 94.7685

AY+11 N/A 0.6471 0.4867 0.4727 97.1286

Composite Discount Factors

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 35.4611 35.4611 64.5389 55.5635 86.0930

AY+1 59.1449 23.6838 40.8551 34.5133 84.4773

AY+2 70.8220 11.6771 29.1780 24.5618 84.1792

AY+3 81.9019 11.0799 18.0981 14.6281 80.8265

AY+4 86.3688 4.4669 13.6312 10.9068 80.0133

AY+5 90.0497 3.6809 9.9503 7.7715 78.1028 AY+6 92.7488 2.6991 7.2512 5.4588 75.2820

AY+7 93.8259 1.0771 6.1741 4.6775 75.7592 AY+8 94.2415 0.4156 5.7585 4.5302 78.6700 AY+9 94.8568 0.6153 5.1432 4.1685 81.0493

AY+10 N/A 0.6153 4.5279 3.7851 83.5960 AY+11 N/A 0.6153 3.9125 3.3787 86.3558 AY+12 N/A 0.6153 3.2972 2.9479 89.4060 AY+13 N/A 0.6153 2.6819 2.4912 92.8922 AY+14 N/A 0.6153 2.0665 2.0072 97.1286

2001–53 I.R.B 644 December 31, 2001

Fidelity/Surety

Estimated

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Factors

Tax Year

Cumulative Losses Paid

(%)

AY+0 24.1540 24.1540 75.8460 70.3585 92.7650 AY+1 59.0961 34.9421 40.9039 38.6050 94.3797 AY+2 N/A 20.4520 20.4520 19.8647 97.1286

Financial Guaranty/Mortgage Guaranty

Estimated

Factors

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Tax Year

Cumulative Losses Paid

(%)

AY+0 9.2513 9.2513 90.7487 84.1431 92.7210

AY+1 50.5659 41.3146 49.4341 46.6558 94.3797

AY+2 N/A 24.7171 24.7171 24.0073 97.1286

International

(Composite)

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 35.4611 35.4611 64.5389 55.5635 86.0930

AY+1 59.1449 23.6838 40.8551 34.5133 84.4773 AY+2 70.8220 11.6771 29.1780 24.5618 84.1792 AY+3 81.9019 11.0799 18.0981 14.6281 80.8265

AY+4 86.3688 4.4669 13.6312 10.9068 80.0133 AY+5 90.0497 3.6809 9.9503 7.7715 78.1028 AY+6 92.7488 2.6991 7.2512 5.4588 75.2820

AY+7 93.8259 1.0771 6.1741 4.6775 75.7592 AY+8 94.2415 0.4156 5.7585 4.5302 78.6700 AY+9 94.8568 0.6153 5.1432 4.1685 81.0493 AY+10 N/A 0.6153 4.5279 3.7851 83.5960 AY+11 N/A 0.6153 3.9125 3.3787 86.3558

AY+12 N/A 0.6153 3.2972 2.9479 89.4060 AY+13 N/A 0.6153 2.6819 2.4912 92.8922 AY+14 N/A 0.6153 2.0665 2.0072 97.1286

December 31, 2001 645 2001–53 I.R.B.

Medical Malpractice — Claims-Made

Estimated

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Factors

Tax Year

Cumulative Losses Paid

(%)

AY+0 6.3899 6.3899 93.6101 77.4322 82.7178 AY+1 24.0011 17.6112 75.9989 63.9463 84.1411 AY+2 42.6970 18.6959 57.3030 48.5345 84.6980 AY+3 58.0610 15.3640 41.9390 35.6284 84.9528 AY+4 69.6653 11.6043 30.3347 25.8187 85.1128 AY+5 75.6033 5.9380 24.3967 21.2542 87.1194 AY+6 81.8786 6.2753 18.1214 16.0687 88.6725

AY+7 87.8539 5.9753 12.1461 10.8809 89.5834

AY+8 89.5207 1.6668 10.4793 9.8176 93.6862

AY+9 94.3025 4.7818 5.6975 5.4836 96.2450

AY+10 N/A 4.7818 0.9157 0.8894 97.1286

Medical Malpractice — Occurrence

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 2.1239 2.1239 97.8761 72.4330 74.0048

AY+1 6.4831 4.3592 93.5169 72.2909 77.3025

AY+2 15.5987 9.1156 84.4013 67.2433 79.6709

AY+3 31.9062 16.3075 68.0938 54.4883 80.0194

AY+4 45.0931 13.1868 54.9069 44.1809 80.4650 AY+5 50.0751 4.9821 49.9249 41.7024 83.5302 AY+6 60.9728 10.8976 39.0272 32.9847 84.5171 AY+7 69.2138 8.2411 30.7862 26.4791 86.0097 AY+8 72.8658 3.6519 27.1342 24.3079 89.5840

AY+9 80.0005 7.1347 19.9995 18.4208 92.1061 AY+10 N/A 7.1347 12.8648 12.1803 94.6798 AY+11 N/A 7.1347 5.7300 5.5655 97.1286

2001–53 I.R.B 646 December 31, 2001

Miscellaneous Casualty

Estimated

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Factors

Tax Year

Cumulative Losses Paid

(%)

AY+0 77.6669 77.6669 22.3331 21.2118 94.9792 AY+1 94.0673 16.4004 5.9327 5.5993 94.3797 AY+2 N/A 2.9664 2.9664 2.8812 97.1286

Multiple Peril Lines (Homeowners/Farmowners Multiple Peril, Commercial Multiple Peril, and Special Liability

(Ocean Marine, Aircraft (All Perils), Boiler, and Machinery))

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 55.9587 55.9587 44.0413 39.2528 89.1272

AY+1 77.8939 21.9352 22.1061 19.0243 86.0589

AY+2 84.0083 6.1144 15.9917 13.8706 86.7360

AY+3 91.3188 7.3105 8.6812 7.1762 82.6633

AY+4 92.1670 0.8482 7.8330 6.7334 85.9627

AY+5 94.3838 2.2168 5.6162 4.8552 86.4488

AY+6 96.4959 2.1121 3.5041 2.9719 84.8124

AY+7 97.3670 0.8712 2.6330 2.2533 85.5817

AY+8 98.0034 0.6364 1.9966 1.7334 86.8153

AY+9 98.4059 0.4025 1.5941 1.4230 89.2642

AY+10 N/A 0.4025 1.1916 1.0940 91.8045 AY+11 N/A 0.4025 0.7892 0.7453 94.4346

AY+12 N/A 0.4025 0.3867 0.3756 97.1286

Other (Including Credit)

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 66.7418 66.7418 33.2582 31.4355 94.5195 AY+1 89.2755 22.5337 10.7245 10.1217 94.3797 AY+2 N/A 5.3622 5.3622 5.2083 97.1286

December 31, 2001 647 2001–53 I.R.B.

Other Liability — Claims-Made

Estimated

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Factors

Tax Year

Cumulative Losses Paid

(%)

AY+0 10.2440 10.2440 89.7560 74.4023 82.8940 AY+1 29.3763 19.1323 70.6237 59.1686 83.7800 AY+2 44.4111 15.0349 55.5889 47.2393 84.9799 AY+3 67.8197 23.4086 32.1803 25.9731 80.7112 AY+4 73.4753 5.6555 26.5247 21.7087 81.8434 AY+5 78.8604 5.3852 21.1396 17.4669 82.6265 AY+6 83.5027 4.6422 16.4973 13.7354 83.2585 AY+7 84.0676 0.5649 15.9324 13.9779 87.7327

AY+8 85.2129 1.1453 14.7871 13.6374 92.2252

AY+9 90.5992 5.3863 9.4008 8.9102 94.7808

AY+10 N/A 5.3863 4.0145 3.8993 97.1286

Other Liability — Occurrence

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 13.5751 13.5751 86.4249 68.4370 79.1866

AY+1 26.3964 12.8213 73.6036 59.3429 80.6249

AY+2 40.2725 13.8761 59.7275 48.6171 81.3982

AY+3 55.4566 15.1841 44.5434 35.9011 80.5981

AY+4 65.3309 9.8742 34.6691 27.8890 80.4434 AY+5 74.0647 8.7339 25.9353 20.5703 79.3140

AY+6 80.9090 6.8442 19.0910 14.7580 77.3031 AY+7 84.3622 3.4532 15.6378 12.0881 77.3006 AY+8 84.6163 0.2542 15.3837 12.5517 81.5914

AY+9 86.7311 2.1147 13.2689 11.1276 83.8621 AY+10 N/A 2.1147 11.1542 9.6180 86.2277 AY+11 N/A 2.1147 9.0395 8.0178 88.6981 AY+12 N/A 2.1147 6.9247 6.3216 91.2910 AY+13 N/A 2.1147 4.8100 4.5237 94.0479

AY+14 N/A 2.1147 2.6953 2.6179 97.1286

2001–53 I.R.B 648 December 31, 2001

Private Passenger Auto Liability/Medical

Estimated

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Factors

Tax Year

Cumulative Losses Paid

(%)

AY+0 37.9339 37.9339 62.0661 56.5092 91.0468 AY+1 67.7044 29.7705 32.2956 29.2492 90.5670 AY+2 81.5316 13.8272 18.4684 16.7681 90.7936 AY+3 89.8898 8.3583 10.1102 9.1689 90.6897 AY+4 94.6531 4.7633 5.3469 4.8149 90.0509 AY+5 97.1265 2.4734 2.8735 2.5573 88.9961 AY+6 98.4587 1.3322 1.5413 1.3392 86.8852 AY+7 98.9811 0.5224 1.0189 0.8817 86.5309

AY+8 99.2330 0.2519 0.7670 0.6752 88.0336

AY+9 99.4067 0.1737 0.5933 0.5369 90.4936

AY+10 N/A 0.1737 0.4196 0.3903 93.0125

AY+11 N/A 0.1737 0.2460 0.2349 95.5126

AY+12 N/A 0.1737 0.0723 0.0702 97.1286

Products Liability — Claims-Made

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 4.9750 4.9750 95.0250 76.1308 80.1166

AY+1 15.1072 10.1322 84.8928 70.2670 82.7714

AY+2 30.9560 15.8488 69.0440 58.1656 84.2443 AY+3 38.2420 7.2860 61.7580 54.1541 87.6876

AY+4 68.6101 30.3681 31.3899 26.1375 83.2673 AY+5 78.5966 9.9865 21.4034 17.4241 81.4078 AY+6 88.3971 9.8005 11.6029 8.3793 72.2169

AY+7 93.2957 4.8986 6.7043 3.8386 57.2557 AY+8 88.3815 -4.9142 11.6185 9.1284 78.5676 AY+9 89.6105 1.2290 10.3895 8.4107 80.9542 AY+10 N/A 1.2290 9.1604 7.6500 83.5111 AY+11 N/A 1.2290 7.9314 6.8436 86.2851

AY+12 N/A 1.2290 6.7024 5.9888 89.3544 AY+13 N/A 1.2290 5.4733 5.0828 92.8653 AY+14 N/A 1.2290 4.2443 4.1224 97.1286

December 31, 2001 649 2001–53 I.R.B.

Products Liability – Occurrence

Estimated

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Factors

Tax Year

Cumulative Losses Paid

(%)

AY+0 9.0653 9.0653 90.9347 69.4041 76.3230 AY+1 14.9035 5.8382 85.0965 67.5575 79.3893 AY+2 29.2591 14.3555 70.7409 56.8310 80.3369 AY+3 45.6462 16.3871 54.3538 43.3693 79.7908 AY+4 57.5945 11.9483 42.4055 33.6700 79.4000 AY+5 63.8634 6.2689 36.1366 29.2359 80.9039 AY+6 75.2266 11.3632 24.7734 19.2910 77.8696 AY+7 78.2679 3.0413 21.7321 17.3172 79.6849

AY+8 78.1898 -0.0781 21.8102 18.4367 84.5322

AY+9 81.8722 3.6825 18.1278 15.7515 86.8918

AY+10 N/A 3.6825 14.4453 12.9053 89.3391

AY+11 N/A 3.6825 10.7628 9.8883 91.8744

AY+12 N/A 3.6825 7.0803 6.6902 94.4902

AY+13 N/A 3.6825 3.3979 3.3003 97.1286

Reinsurance A (Nonproportional Property)

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 27.1668 27.1668 72.8332 64.9403 89.1631 AY+1 68.7008 41.5340 31.2992 26.0748 83.3084

AY+2 70.0362 1.3354 29.9638 26.2645 87.6541 AY+3 87.5338 17.4976 12.4662 9.8255 78.8169 AY+4 90.2132 2.6794 9.7868 7.6564 78.2320

AY+5 91.3751 1.1619 8.6249 6.9196 80.2275 AY+6 94.3845 3.0095 5.6155 4.2363 75.4399 AY+7 93.3293 -1.0552 6.6707 5.5769 83.6030 AY+8 N/A 1.0387 5.6320 4.8421 85.9749 AY+9 N/A 1.0387 4.5932 4.0632 88.4598

AY+10 N/A 1.0387 3.5545 3.2375 91.0821 AY+11 N/A 1.0387 2.5158 2.3623 93.9007 AY+12 N/A 1.0387 1.4771 1.4346 97.1286

2001–53 I.R.B 650 December 31, 2001

Reinsurance B (Non-proportional Liability)

Estimated

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Factors

Tax Year

Cumulative Losses Paid

(%)

AY+0 6.6962 6.6962 93.3038 69.3996 74.3802 AY+1 22.3944 15.6982 77.6056 57.4013 73.9654 AY+2 32.6486 10.2542 67.3514 50.2879 74.6651 AY+3 50.2234 17.5748 49.7766 35.2109 70.7379 AY+4 53.5839 3.3605 46.4161 33.8637 72.9568 AY+5 55.6838 2.0999 44.3162 33.7335 76.1201 AY+6 63.6144 7.9306 36.3856 27.5925 75.8336

AY+7 66.4211 2.8066 33.5789 26.3584 78.4969

AY+8 N/A 2.8066 30.7723 25.0503 81.4054

AY+9 N/A 2.8066 27.9656 23.6637 84.6171

AY+10 N/A 2.8066 25.1590 22.1939 88.2146

AY+11 N/A 2.8066 22.3524 20.6359 92.3211

AY+12 N/A 2.8066 19.5457 18.9845 97.1286

Reinsurance C (Financial Lines)

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 11.4622 11.4622 88.5378 77.3623 87.3777

AY+1 44.5791 33.1169 55.4209 47.9081 86.4441 AY+2 63.9134 19.3343 36.0866 30.8767 85.5627 AY+3 65.6185 1.7051 34.3815 30.9737 90.0885 AY+4 79.9778 14.3593 20.0222 18.0484 90.1419 AY+5 88.9152 8.9374 11.0848 9.9297 89.5793

AY+6 91.2490 2.3338 8.7510 8.1227 92.8199 AY+7 94.7645 3.5155 5.2355 4.9906 95.3224 AY+8 N/A 3.5155 1.7200 1.6706 97.1286

December 31, 2001 651 2001–53 I.R.B.

Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Glass, Burglary and Theft)

Estimated

(%)

Discounted

Unpaid Losses at Year End

(%)

Discount

Paid Each Year

Losses

Factors

Tax Year

Cumulative Losses Paid

(%)

AY+0 57.4895 57.4895 42.5105 40.5227 95.3241 AY+1 90.5193 33.0297 9.4807 8.9479 94.3797 AY+2 N/A 4.7404 4.7404 4.6043 97.1286

Workers’ Compensation

Estimated

Discounted

Unpaid Losses at Year End

(%)

Factors

(%)

Paid Each Year

Losses

(%)

Unpaid Losses at Year End

(%)

Discount

Tax Year

Cumulative Losses Paid

(%)

AY+0 23.6461 23.6461 76.3539 62.7199 82.1437

AY+1 44.8166 21.1705 55.1834 44.6867 80.9786

AY+2 57.9652 13.1486 42.0348 33.8306 80.4824

AY+3 72.0542 14.0889 27.9458 21.3550 76.4156

AY+4 80.5542 8.5000 19.4458 13.8850 71.4034

AY+5 84.8876 4.3334 15.1124 10.2565 67.8684

AY+6 87.1173 2.2297 12.8827 8.5763 66.5723

AY+7 88.2647 1.1473 11.7353 7.9096 67.4000

AY+8 88.5404 0.2757 11.4596 8.1003 70.6858

AY+9 88.8062 0.2658 11.1938 8.3126 74.2613

AY+10 N/A 0.2658 10.9279 8.5377 78.1273 AY+11 N/A 0.2658 10.6621 8.7763 82.3127

AY+12 N/A 0.2658 10.3963 9.0291 86.8499 AY+13 N/A 0.2658 10.1304 9.2972 91.7750 AY+14 N/A 0.2658 9.8646 9.5813 97.1286

DRAFTING INFORMATION

The principal author of this revenue procedure is Katherine A. Hossofsky of

the Office of the Associate Chief Counsel (Financial Institutions and Products). For further information regarding this revenue procedure, contact Ms. Hossofsky at

(202) 622–3477 (not a toll-free number).

2001–53 I.R.B 652 December 31, 2001

AY+0 86.1785

AY+1 84.6206

AY+2 84.2139

AY+3 84.1124

AY+4 84.8349

AY+5 85.3994

AY+6 85.4575

AY+7 85.5553

AY+8 88.3172

AY+9 90.7912

AY+10 93.3259

AY+11 95.8396

AY+12 97.1286

Fidelity/Surety

26 CFR 601.201: Rulings and determination letters. (Also Part I, Sections 832, 846; 1.832–4, 1.846–1.)

Rev. Proc. 2001–61