Authored by: Carrie Small
In Internal Revenue Bulletin 2016-51, the Internal Revenue Service published Rev. Proc. 2016-58 (loss payment patterns and discount factors) and Rev. Proc. 2016-59 (salvage discount factors) for 2016.
Revenue Procedure 2016-58
Rev. Proc. 2016-58, under Internal Revenue Code (IRC) section 846, establishes the loss payment patterns and discount factors to be used for the 2016 accident year. Insurance companies should use these factors for computing discounted unpaid losses for each property and casualty line of business.
Revenue Procedure 2016-59
Rev. Proc. 2016-59, under IRC section 832, establishes the salvage discount factors to be used for the 2016 accident year. These factors should be used for computing discounted estimated salvage recoverable for each property and casualty line of business.
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