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c Florida Municipal Insurance Trust REQUIRED SUPPLEMENTARY INFORMATION TEN-YEAR CLAIMS DEVELOPMENT INFORMATION September 30, 2010 Schedule 1 The Governmental Accounting Standards Board requires public entity risk pools to present claims development information for the last ten years, The information on the next page illustrates how the Trust's premium (net of reinsurance), investment and other income compare to related costs of loss (net of loss assumed by reinsurers) and other expenses of the Trust as of the end of each of the last ten years, The rows of the schedule are defined as follows: 1, This line shows the total of each fiscal year's gross premium, investment and other income, premium ceded to reinsurers, and net earned premium, investment and other income, Pursuant-to GASB Statement34, effective for years ending on or after September 30, 2003, earned income is reported net of incentive credits, 2, This line shows each fiscal year's other operating costs not allocable to individual claims, 3, This line shows the Trust's gross incurred claims and allocated claim adjustment expense, claims assumed by reinsurers and net incurred claims and allocated claim adjustment expense (both paid and accrued) as originally reported at the end of the first year in which the event that triggered coverage under the contract occurred (called policy year), 4. This section of 10 rows shows the cumulative net amounts paid as of the end of successive years for each policy year. c 5, This line shows the latest reestimated amount of claims assumed by reinsurers as of the end of the current year for each policy year, 6, This section of 10 rows shows how each policy year's net incurred claims increased or decreased as of the end of successive years, This annual reestimation results from new information received on known claims, reevaluation of existing information on known claims, as well as emergence of new claims not previously known. 7, This line compares the latest reestimated net incurred claims amount to the amount originally established (line 3) and shows whether this latest estimate of claims cost is greater or less than originally thought. As data for individual policy years mature, the correlation between original estimates and reestimated amounts commonly is used to evaluate the accuracy of net incurred claims currently recognized in less mature policy years, The columns of the table show data for successive policy years. c 20