Montana State Fund : Financial Audit for the Fiscal Year Ended June 30, .. 2003

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As the result of commuting the previous aggregate stop loss contract on June 30, 2002, premium revenue for fiscal year 2002 is increased by $464,760 due to the reversal of the funds withheld account which offset 2002 premiums paid for reinsurance coverage.
During fiscal years 2003 and 2002, estimated claim reserves w^ere reduced $8,000,000 and $6,500,000 respectively, for the amount of reinsurance estimated to be ultimately recoverable on incurred losses, MSF also has assumed reinsurance relati
...onships with Argonaut Insurance Company, Fireman's Fund Insurance Company and Legion Insurance Company related to Other States Coverage (OSC). MSF assumes risk for OSC claims, which are then covered under MSF's ceded Page A-28 Montana State Fund (A Component Unit of the State of Montana) Notes to Financial Statements June 30, 2003 and 2002 reinsurance contract. Assumed premium for fiscal years 2003 and 2002 is $1,598,124 and $1,582,559, respectively.
4. Risk Management MSF provides liability coverage to employers for injured employees that are insured under the Workers' Compensation and Occupational Disease Acts of Montana.


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