The Internal Revenue Service has published revenue procedures setting forth the discount factors that property and casualty insurance companies can use for accidents and other types of claims this year.
Rev Proc 2010-49 sets forth for purposes of Section 846 of the Tax Code the loss payment patterns and discount factors for each property and casualty line of business for the 2010 accident year. These factors are to be used by property and casualty insurance companies in discounting unpaid losses.
Rev Proc 2010-50 sets forth for purposes of section 832 of the Internal Revenue Code the salvage discount factors for each property and casualty line of business for the 2010 accident year. These factors are to be used by property and casualty insurance companies to discount estimated salvage recoverable.
Both will appear in IRB 2010-50 dated Dec. 13, 2010.
