SECTION 3. SCOPE
Internal Revenue Bulletin 2019-2 · 2026-10-03 edition · updated 2026-10-04 · United States
This revenue procedure applies to any taxpayer that is required to discount unpaid losses under § 846 for a line of business using the discount factors published by the Secretary, and also applies to any taxpayer that is required to discount estimated salvage recoverable under § 832. This revenue procedure applies to taxable years beginning after December 31, 2017.
1The published yield curve spot rates can be found at https://home.treasury.gov/data/treasury-coupon-issues-and-corporate-bond-yield-curve/corporate-bond-yield-curve.
Bulletin No. 2019–02 285 January 7, 2019
of the preceding taxable year, and the unpaid losses (as defined in §§ 805(a)(1) and 807(c)(2)) at the end of the preceding taxable year. The taxpayer also must, for its first taxable year beginning after December 31, 2017, use the unpaid loss discount factors prescribed in Tables 3 and 4 to determine the amount of the TCJA ad
justment to be taken into account in that taxable year and, unless revised discount factors have been published, the amount of the TCJA adjustment to be taken into account in subsequent taxable years.
.04 Section V of Notice 88–100, 1988–2 C.B. 439, sets forth a composite method for computing discounted unpaid
losses for accident years that are not separately reported on the annual statement. Tables 1 through 4 separately provide discount factors for taxpayers who have elected to use the composite method of Notice 88–100. See Rev. Proc. 2002–74, 2002–2 C.B. 980.
Table 1 (part A) Factors for Discounting Unpaid Losses Under Section 846 (percent)
For the First Taxable Year Beginning After December 31, 2017, in
Short-Tail Lines of Business
Financial Guaranty/
Auto Physical Fidelity/ Mortgage
Accident Year Damage Surety Guaranty International Other*
2018 98.2924 95.7528 95.5027 96.0825 96.9295
2017 96.9631 96.9631 96.9631 96.9631 96.9631
Years before 2017 98.4640 98.4640 98.4640 98.4640 98.4640
***** For Accident and Health lines of business (other than disability income or credit disability insurance), the dis- count factor for taxable year 2018 is 98.4640 percent.
Auto Physical
Fidelity/
Accident Year
Damage
Surety
Table 1 (part B) Factors for Discounting Unpaid Losses Under Section 846 (percent) For the First Taxable Year Beginning After December 31, 2017, in Short-Tail Lines of Business
Reinsurance – Nonproportional
Assumed
Liability
Reinsurance – Nonproportional Assumed Property
Special Property (Fire, Allied Lines,
Inland Marine,
Earthquake, Burglary & Theft) Warranty
Assumed Assumed Nonproportional Earthquake, Short-Tail
Accident Year Financial Lines Liability Assumed Property Burglary & Theft) Warranty Composite
2018 95.3460 94.5342 96.0638 97.3657 98.0866 96.8171
2017 96.9631 96.9631 96.9631 96.9631 96.9631 96.9631
Years before 2017 98.4640 98.4640 98.4640 98.4640 98.4640 98.4640
Accident Year
Reinsurance – Nonproportional
Assumed Financial Lines
Table 2 (part A) Factors for Discounting Unpaid Losses Under Section 846 (percent) For the First Taxable Year Beginning After December 31, 2017, in Long-Tail Lines of Business
Occurrence
Commercial
Multiple Peril Lines
Accident
Auto/Truck Liability/Medical
Medical Professional
Liability – Claims-Made
Medical Professional Liability –
Other Liability –
Claims-Made
Other Liability –
Year
Year Liability/Medical Claims-Made Occurrence Peril Lines Claims-Made Occurrence
2018 93.7136 91.1847 86.1703 95.0382 90.3833 88.7841
2017 94.4581 92.2226 88.3371 93.3147 91.2289 89.6647
2016 95.0089 92.4524 89.9455 93.6251 91.7605 90.2415
2015 95.0495 92.7481 91.3552 92.8232 91.8038 90.4153
2014 94.9245 92.8961 92.3529 90.9251 91.6496 90.1639
2013 94.7625 92.9180 93.1329 91.1314 92.1818 90.2353
2012 95.0535 93.9081 93.9891 90.8234 92.6788 90.2570
2011 94.6859 94.8439 94.7064 90.5036 93.4801 91.5250
2010 96.1971 95.7805 95.8926 93.1447 94.6287 92.1970
2009 98.2598 97.6158 97.6580 94.5519 96.4911 94.1762
January 7, 2019 286 Bulletin No. 2019–02
Table 2 (part A) Factors for Discounting Unpaid Losses Under Section 846 (percent) For the First Taxable Year Beginning After December 31, 2017, in Long-Tail Lines of Business
Occurrence
Commercial
Multiple Peril Lines
Accident
Auto/Truck Liability/Medical
Medical Professional
Liability – Claims-Made
Medical Professional Liability –
Other Liability –
Claims-Made
Other Liability –
Year Liability/Medical Claims-Made Occurrence Peril Lines Claims-Made Occurrence
Taxpayer Not Using the Composite Method
Year
2008 98.4640 98.4640 98.4640 95.9642 97.8837 95.6063
2007 98.4640 98.4640 98.4640 97.3555 98.4640 97.0517
Years 98.4640 98.4640 98.4640 98.4640 98.4640 98.4640 before
2007
Taxpayer Using the Composite Method
Years before
2009
98.4640 98.4640 98.4640 96.7357 97.9777 96.5363
Table 2 (part B) Factors for Discounting Unpaid Losses Under Section 846 (percent) For the First Taxable Year Beginning After December 31, 2017, in Long-Tail Lines of Business
Products Liability – Claims-Made
Products Liability – Occurrence
Workers’ Compensation
Auto Liability – Liability – Workers’ Long-Tail
Accident Year Liability/Medical Claims-Made Occurrence Compensation Composite
2018 95.4241 85.1518 87.1543 87.4184 92.3564
2017 95.0203 85.6347 88.5453 85.8424 91.2748
2016 94.9784 87.5083 89.3276 84.6991 90.9788
2015 94.5984 82.9398 90.7045 83.1346 89.7633
2014 93.9009 84.2812 89.3185 82.5478 88.1393
2013 93.9524 85.6749 89.3669 81.9913 88.0168
2012 94.2025 87.1293 90.3357 82.3684 87.9945
2011 94.7658 88.4262 91.3398 83.2518 88.5587
2010 95.3902 89.7489 91.7494 83.8871 89.8408
2009 97.5924 91.0980 94.0873 85.8606 91.6956
Taxpayer Not Using the Composite Method
Accident Year
Private Passenger
Auto Liability/Medical
2008 98.4640 92.4736 95.5247 87.1320 93.0752
2007 98.4640 93.8753 96.9877 88.4289 94.4760
2006 98.4640 95.3017 98.4640 89.7517 95.8902
2005 98.4640 96.7473 98.4640 91.1009 97.2894
2004 98.4640 98.1839 98.4640 92.4766 98.4640
2003 98.4640 98.4640 98.4640 93.8785 98.4640
2002 98.4640 98.4640 98.4640 95.3051 98.4640
2001 98.4640 98.4640 98.4640 96.7511 98.4640
2000 98.4640 98.4640 98.4640 98.1886 98.4640
Years before 2000 98.4640 98.4640 98.4640 98.4640 98.4640
Taxpayer Using the Composite Method
Years before 2009 98.4640 94.4219 96.4942 90.7644 94.8105
Bulletin No. 2019–02 287 January 7, 2019
Table 3 (part A) Factors for Discounting Unpaid Losses Under Section 846 (percent) For the Taxable Year Preceding the First Taxable Year Beginning After December 31, 2017, in Short-Tail Lines of
Business
Auto Physical
Financial Guaranty/Mortgage
Accident Year Damage Fidelity/Surety Guaranty International Other*
2017 98.2924 95.7528 95.5027 96.0825 96.9295
2016 96.9631 96.9631 96.9631 96.9631 96.9631
Years before 2016 98.4640 98.4640 98.4640 98.4640 98.4640
***** For Accident and Health lines of business (other than disability income or credit disability insurance), the dis- count factor for taxable year 2017 is 98.4640 percent.
Accident Year
Damage Fidelity/Surety
Table 3 (part B) Factors for Discounting Unpaid Losses Under Section 846 (percent) For the Taxable Year Preceding the First Taxable Year Beginning After December 31, 2017, in Short-Tail Lines of
Business
Reinsurance – Nonproportional Assumed Liability
Special Property (Fire, Allied Lines,
Inland Marine,
Reinsurance – Nonproportional
Assumed Property
Assumed Nonproportional Assumed Earthquake, Short-Tail
Accident Year Financial Lines Assumed Liability Property Burglary & Theft) Warranty Composite
2017 95.3460 94.5342 96.0638 97.3657 98.0866 96.8171
2016 96.9631 96.9631 96.9631 96.9631 96.9631 96.9631
Years before 2016 98.4640 98.4640 98.4640 98.4640 98.4640 98.4640
Earthquake, Burglary & Theft) Warranty
Accident Year
Reinsurance – Nonproportional
Assumed Financial Lines
Table 4 (part A) Factors for Discounting Unpaid Losses Under Section 846 (percent) For the Taxable Year Preceding the First Taxable Year Beginning After December 31, 2017, in Long-Tail Lines of
Business
Medical Professional
Liability – Occurrence
Multiple Peril Lines
Commercial
Medical Professional
Liability –
Claims-
Made
Other Liability –
Claims-Made
Other Liability –
Accident Year Liability/Medical Made Occurrence Peril Lines Claims-Made Occurrence
2017 93.7136 91.1847 86.1703 95.0382 90.3833 88.7841
2016 94.4581 92.2226 88.3371 93.3147 91.2289 89.6647
2015 95.0089 92.4524 89.9455 93.6251 91.7605 90.2415
2014 95.0495 92.7481 91.3552 92.8232 91.8038 90.4153
2013 94.9245 92.8961 92.3529 90.9251 91.6496 90.1639
2012 94.7625 92.9180 93.1329 91.1314 92.1818 90.2353
2011 95.0535 93.9081 93.9891 90.8234 92.6788 90.2570
2010 94.6859 94.8439 94.7064 90.5036 93.4801 91.5250
2009 96.1971 95.7805 95.8926 93.1447 94.6287 92.1970
2008 98.2598 97.6158 97.6580 94.5519 96.4911 94.1762
Taxpayer Not Using the Composite Method
Accident Year
Auto/Truck Liability/Medical
2007 98.4640 98.4640 98.4640 95.9642 97.8837 95.6063
2006 98.4640 98.4640 98.4640 97.3555 98.4640 97.0517
Years before 2006 98.4640 98.4640 98.4640 98.4640 98.4640 98.4640
Taxpayer Using the Composite Method
Years before 2008 98.4640 98.4640 98.4640 96.7357 97.9777 96.5363
January 7, 2019 288 Bulletin No. 2019–02
Table 4 (part B) Factors for Discounting Unpaid Losses Under Section 846 (percent) For the Taxable Year Preceding the First Taxable Year Beginning After December 31, 2017, in Long-Tail Lines of
Business
Products Liability –
Products Liability – Occurrence
Workers’ Compensation
Private Passenger Claims- Liability – Workers’ Long-Tail
Accident Year Auto Liability/Medical Made Occurrence Compensation Composite
2017 95.4241 85.1518 87.1543 87.4184 92.3564
2016 95.0203 85.6347 88.5453 85.8424 91.2748
2015 94.9784 87.5083 89.3276 84.6991 90.9788
2014 94.5984 82.9398 90.7045 83.1346 89.7633
2013 93.9009 84.2812 89.3185 82.5478 88.1393
2012 93.9524 85.6749 89.3669 81.9913 88.0168
2011 94.2025 87.1293 90.3357 82.3684 87.9945
2010 94.7658 88.4262 91.3398 83.2518 88.5587
2009 95.3902 89.7489 91.7494 83.8871 89.8408
2008 97.5924 91.0980 94.0873 85.8606 91.6956
Taxpayer Not Using the Composite Method
Claims-
Made
Accident Year
Private Passenger Auto Liability/Medical
2007 98.4640 92.4736 95.5247 87.1320 93.0752
2006 98.4640 93.8753 96.9877 88.4289 94.4760
2005 98.4640 95.3017 98.4640 89.7517 95.8902
2004 98.4640 96.7473 98.4640 91.1009 97.2894
2003 98.4640 98.1839 98.4640 92.4766 98.4640
2002 98.4640 98.4640 98.4640 93.8785 98.4640
2001 98.4640 98.4640 98.4640 95.3051 98.4640
2000 98.4640 98.4640 98.4640 96.7511 98.4640
1999 98.4640 98.4640 98.4640 98.1886 98.4640
Years before 1999 98.4640 98.4640 98.4640 98.4640 98.4640
Taxpayer Using the Composite Method
Years before 2008 98.4640 94.4219 96.4942 90.7644 94.8105
Get a plain-English answer with a citation back to this text.
Ask AI about this code