rp-01-60.pdf

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Part III
Administrative, Procedural, and Miscellaneous
26 CFR 601.201: Rulings and determination letters
(Also Part I, Sections 846; 1.846-1.)
Rev. Proc. 2001-60
SECTION 1. PURPOSE
This revenue procedure prescribes the loss payment patterns and discount factors for the
2001 accident year. These factors will be used for computing discounted unpaid losses under
' 846 of the Internal Revenue Code. See Rev. Proc. 98-11, 1998-1 C.B. 358, for background
concerning the loss payment patterns and application of the discount factors.
SEC. 2. SCOPE
This revenue procedure applies to any taxpayer that is required to discount its unpaid
losses under ' 846 for a line of business using discount factors published by the Secretary.
SEC. 3. TABLES OF DISCOUNT FACTORS
.01 The following tables present separately for each line of business the discount factors
under ' 846 for accident year 2001. All the discount factors presented in this section were
determined using the applicable interest rate under ' 846(c) for 2001, which is 6.00 percent, and
by assuming all loss payments occur in the middle of the calendar year.
.02 If the groupings of individual lines of business on the annual statement change,
taxpayers must discount the unpaid losses on the affected lines of business in accordance with the
discounting patterns that would have applied to those unpaid losses based on their classification
on the 1995 annual statement. See Rev. Proc. 98-11, 1998-1 C. B. 358, section 2, for

2
additional background on discounting under section 846 and the use of the Secretary=s tables.
.03 Section V of Notice 88-100, 1988-2 C.B. 439, provides a composite discount factor
to be used in determining the discounted unpaid losses for accident years that are not separately
reported on the annual statement. Taxpayers that do not use the methodology set forth in section
V of Notice 88-100 should instead use the discount factor for the appropriate year in the
Secretary=s table for that line of business. If such taxpayers have unpaid losses relating to an
accident year that is older than the last accident year for which a discount factor is presented in
the Secretary=s table, those unpaid losses should be discounted using the discount factor for the
last accident year in the Secretary=s table. See section 2.03(3) of Rev. Proc. 98-11.
.04 Tables
Accident and Health
Accident and HealthAccident and Health
Accident and Health
(Other Than Disability Income or Credit Disability Insurance)
(Other Than Disability Income or Credit Disability Insurance)(Other Than Disability Income or Credit Disability Insurance)
(Other Than Disability Income or Credit Disability Insurance)
Discount factor for all years equals 97.1286 percent.
Auto Physical Damage
Auto Physical DamageAuto Physical Damage
Auto Physical Damage
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 089.943089.943010.05709.718296.6309
AY+ 199.38149.43840.61860.583894.3797
AY+ 2N/A0.30930.30930.300497.1286

3
Commercial Auto/Truck Liability/Medical
Commercial Auto/Truck Liability/MedicalCommercial Auto/Truck Liability/Medical
Commercial Auto/Truck Liability/Medical
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 025.807525.807574.192565.314488.0336
AY+ 149.879324.071850.120744.449788.6854
AY+ 267.659217.779932.340828.811289.0862
AY+ 379.771112.111920.228918.069989.3272
AY+ 488.21328.442111.786810.462488.7640
AY+ 593.17784.96466.82225.978887.6375
AY+ 695.96232.78454.03773.470785.9577
AY+ 797.00911.04682.99092.601286.9707
AY+ 897.57190.56282.42812.177889.6931
AY+ 998.21910.64711.78091.642292.2109
AY+10N/A0.64711.13381.074594.7685
AY+11N/A0.64710.48670.472797.1286
Composite Discount Factors
Composite Discount FactorsComposite Discount Factors
Composite Discount Factors
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 035.461135.461164.538955.563586.0930
AY+ 159.144923.683840.855134.513384.4773
AY+ 270.822011.677129.178024.561884.1792
AY+ 381.901911.079918.098114.628180.8265
AY+ 486.36884.466913.631210.906880.0133
AY+ 590.04973.68099.95037.771578.1028
AY+ 692.74882.69917.25125.458875.2820
AY+ 793.82591.07716.17414.677575.7592
AY+ 894.24150.41565.75854.530278.6700
AY+ 994.85680.61535.14324.168581.0493
AY+10N/A0.61534.52793.785183.5960
AY+11N/A0.61533.91253.378786.3558
AY+12N/A0.61533.29722.947989.4060
AY+13N/A0.61532.68192.491292.8922
AY+14N/A0.61532.06652.007297.1286

4
Fidelity/Surety
Fidelity/SuretyFidelity/Surety
Fidelity/Surety
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 024.154024.154075.846070.358592.7650
AY+ 159.096134.942140.903938.605094.3797
AY+ 2N/A20.452020.452019.864797.1286
Financial Guaranty/Mortgage Guaranty
Financial Guaranty/Mortgage GuarantyFinancial Guaranty/Mortgage Guaranty
Financial Guaranty/Mortgage Guaranty
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 09.25139.251390.748784.143192.7210
AY+ 150.565941.314649.434146.655894.3797
AY+ 2N/A24.717124.717124.007397.1286

5
International
InternationalInternational
International
(Composite)
(Composite)(Composite)
(Composite)
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 035.461135.461164.538955.563586.0930
AY+ 159.144923.683840.855134.513384.4773
AY+ 270.822011.677129.178024.561884.1792
AY+ 381.901911.079918.098114.628180.8265
AY+ 486.36884.466913.631210.906880.0133
AY+ 590.04973.68099.95037.771578.1028
AY+ 692.74882.69917.25125.458875.2820
AY+ 793.82591.07716.17414.677575.7592
AY+ 894.24150.41565.75854.530278.6700
AY+ 994.85680.61535.14324.168581.0493
AY+10N/A0.61534.52793.785183.5960
AY+11N/A0.61533.91253.378786.3558
AY+12N/A0.61533.29722.947989.4060
AY+13N/A0.61532.68192.491292.8922
AY+14N/A0.61532.06652.007297.1286
Medical Malpractice -- Claims-Made
Medical Malpractice -- Claims-MadeMedical Malpractice -- Claims-Made
Medical Malpractice -- Claims-Made
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 06.38996.389993.610177.432282.7178
AY+ 124.001117.611275.998963.946384.1411
AY+ 242.697018.695957.303048.534584.6980
AY+ 358.061015.364041.939035.628484.9528
AY+ 469.665311.604330.334725.818785.1128
AY+ 575.60335.938024.396721.254287.1194
AY+ 681.87866.275318.121416.068788.6725
AY+ 787.85395.975312.146110.880989.5834
AY+ 889.52071.666810.47939.817693.6862
AY+ 994.30254.78185.69755.483696.2450
AY+10N/A4.78180.91570.889497.1286

6
Medical Malpractice -- Occurrence
Medical Malpractice -- OccurrenceMedical Malpractice -- Occurrence
Medical Malpractice -- Occurrence
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 02.12392.123997.876172.433074.0048
AY+ 16.48314.359293.516972.290977.3025
AY+ 215.59879.115684.401367.243379.6709
AY+ 331.906216.307568.093854.488380.0194
AY+ 445.093113.186854.906944.180980.4650
AY+ 550.07514.982149.924941.702483.5302
AY+ 660.972810.897639.027232.984784.5171
AY+ 769.21388.241130.786226.479186.0097
AY+ 872.86583.651927.134224.307989.5840
AY+ 980.00057.134719.999518.420892.1061
AY+10N/A7.134712.864812.180394.6798
AY+11N/A7.13475.73005.565597.1286
Miscellaneous Casualty
Miscellaneous CasualtyMiscellaneous Casualty
Miscellaneous Casualty
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 077.666977.666922.333121.211894.9792
AY+ 194.067316.40045.93275.599394.3797
AY+ 2N/A2.96642.96642.881297.1286

7
Multiple Peril Lines
Multiple Peril LinesMultiple Peril Lines
Multiple Peril Lines
(Homeowners/
(Homeowners/(Homeowners/
(Homeowners/Farmowners Multiple Peril, Commercial Multiple Peril, and Special Liability
Farmowners Multiple Peril, Commercial Multiple Peril, and Special LiabilityFarmowners Multiple Peril, Commercial Multiple Peril, and Special Liability
Farmowners Multiple Peril, Commercial Multiple Peril, and Special Liability
(Ocean Marine, Aircraft (All Perils), Boiler and Machinery))
(Ocean Marine, Aircraft (All Perils), Boiler and Machinery))(Ocean Marine, Aircraft (All Perils), Boiler and Machinery))
(Ocean Marine, Aircraft (All Perils), Boiler and Machinery))
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 055.958755.958744.041339.252889.1272
AY+ 177.893921.935222.106119.024386.0589
AY+ 284.00836.114415.991713.870686.7360
AY+ 391.31887.31058.68127.176282.6633
AY+ 492.16700.84827.83306.733485.9627
AY+ 594.38382.21685.61624.855286.4488
AY+ 696.49592.11213.50412.971984.8124
AY+ 797.36700.87122.63302.253385.5817
AY+ 898.00340.63641.99661.733486.8153
AY+ 998.40590.40251.59411.423089.2642
AY+10N/A0.40251.19161.094091.8045
AY+11N/A0.40250.78920.745394.4346
AY+12N/A0.40250.38670.375697.1286
Other
OtherOther
Other
(Including Credit)
(Including Credit)(Including Credit)
(Including Credit)
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 066.741866.741833.258231.435594.5195
AY+ 189.275522.533710.724510.121794.3797
AY+ 2N/A5.36225.36225.208397.1286

8
Other Liability -- Claims-Made
Other Liability -- Claims-MadeOther Liability -- Claims-Made
Other Liability -- Claims-Made
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 010.244010.244089.756074.402382.8940
AY+ 129.376319.132370.623759.168683.7800
AY+ 244.411115.034955.588947.239384.9799
AY+ 367.819723.408632.180325.973180.7112
AY+ 473.47535.655526.524721.708781.8434
AY+ 578.86045.385221.139617.466982.6265
AY+ 683.50274.642216.497313.735483.2585
AY+ 784.06760.564915.932413.977987.7327
AY+ 885.21291.145314.787113.637492.2252
AY+ 990.59925.38639.40088.910294.7808
AY+10N/A5.38634.01453.899397.1286
Other Liability -- Occurrence
Other Liability -- OccurrenceOther Liability -- Occurrence
Other Liability -- Occurrence
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 013.575113.575186.424968.437079.1866
AY+ 126.396412.821373.603659.342980.6249
AY+ 240.272513.876159.727548.617181.3982
AY+ 355.456615.184144.543435.901180.5981
AY+ 465.33099.874234.669127.889080.4434
AY+ 574.06478.733925.935320.570379.3140
AY+ 680.90906.844219.091014.758077.3031
AY+ 784.36223.453215.637812.088177.3006
AY+ 884.61630.254215.383712.551781.5914
AY+ 986.73112.114713.268911.127683.8621
AY+10N/A2.114711.15429.618086.2277
AY+11N/A2.11479.03958.017888.6981
AY+12N/A2.11476.92476.321691.2910
AY+13N/A2.11474.81004.523794.0479
AY+14N/A2.11472.69532.617997.1286

9
Private Passenger Auto Liability/Medical
Private Passenger Auto Liability/MedicalPrivate Passenger Auto Liability/Medical
Private Passenger Auto Liability/Medical
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 037.933937.933962.066156.509291.0468
AY+ 167.704429.770532.295629.249290.5670
AY+ 281.531613.827218.468416.768190.7936
AY+ 389.88988.358310.11029.168990.6897
AY+ 494.65314.76335.34694.814990.0509
AY+ 597.12652.47342.87352.557388.9961
AY+ 698.45871.33221.54131.339286.8852
AY+ 798.98110.52241.01890.881786.5309
AY+ 899.23300.25190.76700.675288.0336
AY+ 999.40670.17370.59330.536990.4936
AY+10N/A0.17370.41960.390393.0125
AY+11N/A0.17370.24600.234995.5126
AY+12N/A0.17370.07230.070297.1286
Products Liability -- Claims-Made
Products Liability -- Claims-MadeProducts Liability -- Claims-Made
Products Liability -- Claims-Made
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 04.97504.975095.025076.130880.1166
AY+ 115.107210.132284.892870.267082.7714
AY+ 230.956015.848869.044058.165684.2443
AY+ 338.24207.286061.758054.154187.6876
AY+ 468.610130.368131.389926.137583.2673
AY+ 578.59669.986521.403417.424181.4078
AY+ 688.39719.800511.60298.379372.2169
AY+ 793.29574.89866.70433.838657.2557
AY+ 888.3815-4.914211.61859.128478.5676
AY+ 989.61051.229010.38958.410780.9542
AY+10N/A1.22909.16047.650083.5111
AY+11N/A1.22907.93146.843686.2851
AY+12N/A1.22906.70245.988889.3544
AY+13N/A1.22905.47335.082892.8653
AY+14N/A1.22904.24434.122497.1286

10
Products Liability
Products Liability Products Liability
Products Liability B
BB
B Occurrence
Occurrence Occurrence
Occurrence
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 09.06539.065390.934769.404176.3230
AY+ 114.90355.838285.096567.557579.3893
AY+ 229.259114.355570.740956.831080.3369
AY+ 345.646216.387154.353843.369379.7908
AY+ 457.594511.948342.405533.670079.4000
AY+ 563.86346.268936.136629.235980.9039
AY+ 675.226611.363224.773419.291077.8696
AY+ 778.26793.041321.732117.317279.6849
AY+ 878.1898-0.078121.810218.436784.5322
AY+ 981.87223.682518.127815.751586.8918
AY+10N/A3.682514.445312.905389.3391
AY+11N/A3.682510.76289.888391.8744
AY+12N/A3.68257.08036.690294.4902
AY+13N/A3.68253.39793.300397.1286
Reinsurance A
Reinsurance AReinsurance A
Reinsurance A
(
((
(Nonproportional Property)
Nonproportional Property)Nonproportional Property)
Nonproportional Property)
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 027.166827.166872.833264.940389.1631
AY+ 168.700841.534031.299226.074883.3084
AY+ 270.03621.335429.963826.264587.6541
AY+ 387.533817.497612.46629.825578.8169
AY+ 490.21322.67949.78687.656478.2320
AY+ 591.37511.16198.62496.919680.2275
AY+ 694.38453.00955.61554.236375.4399
AY+ 793.3293-1.05526.67075.576983.6030
AY+ 8N/A1.03875.63204.842185.9749
AY+ 9N/A1.03874.59324.063288.4598
AY+10N/A1.03873.55453.237591.0821
AY+11N/A1.03872.51582.362393.9007
AY+12N/A1.03871.47711.434697.1286

11
Reinsurance B
Reinsurance BReinsurance B
Reinsurance B
(
((
(Nonproportional Liability)
Nonproportional Liability)Nonproportional Liability)
Nonproportional Liability)
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 06.69626.696293.303869.399674.3802
AY+ 122.394415.698277.605657.401373.9654
AY+ 232.648610.254267.351450.287974.6651
AY+ 350.223417.574849.776635.210970.7379
AY+ 453.58393.360546.416133.863772.9568
AY+ 555.68382.099944.316233.733576.1201
AY+ 663.61447.930636.385627.592575.8336
AY+ 766.42112.806633.578926.358478.4969
AY+ 8N/A2.806630.772325.050381.4054
AY+ 9N/A2.806627.965623.663784.6171
AY+10N/A2.806625.159022.193988.2146
AY+11N/A2.806622.352420.635992.3211
AY+12N/A2.806619.545718.984597.1286
Reinsurance C
Reinsurance CReinsurance C
Reinsurance C
(Financial Lines)
(Financial Lines)(Financial Lines)
(Financial Lines)
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 011.462211.462288.537877.362387.3777
AY+ 144.579133.116955.420947.908186.4441
AY+ 263.913419.334336.086630.876785.5627
AY+ 365.61851.705134.381530.973790.0885
AY+ 479.977814.359320.022218.048490.1419
AY+ 588.91528.937411.08489.929789.5793
AY+ 691.24902.33388.75108.122792.8199
AY+ 794.76453.51555.23554.990695.3224
AY+ 8N/A3.51551.72001.670697.1286

12
Special Property
Special PropertySpecial Property
Special Property
(Fire, Allied Lines, Inland Marine, Earthquake, Glass, Burglary and Theft)
(Fire, Allied Lines, Inland Marine, Earthquake, Glass, Burglary and Theft)(Fire, Allied Lines, Inland Marine, Earthquake, Glass, Burglary and Theft)
(Fire, Allied Lines, Inland Marine, Earthquake, Glass, Burglary and Theft)
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 057.489557.489542.510540.522795.3241
AY+ 190.519333.02979.48078.947994.3797
AY+ 2N/A4.74044.74044.604397.1286
Workers' Compensation
Workers' CompensationWorkers' Compensation
Workers' Compensation
Discounted
CumulativeEstimatedUnpaidUnpaid
LossesLosses PaidLosses atLosses atDiscount
Tax YearPaidEach YearYear EndYear EndFactors
(%)(%)(%)(%)(%)
AY+ 023.646123.646176.353962.719982.1437
AY+ 144.816621.170555.183444.686780.9786
AY+ 257.965213.148642.034833.830680.4824
AY+ 372.054214.088927.945821.355076.4156
AY+ 480.55428.500019.445813.885071.4034
AY+ 584.88764.333415.112410.256567.8684
AY+ 687.11732.229712.88278.576366.5723
AY+ 788.26471.147311.73537.909667.4000
AY+ 888.54040.275711.45968.100370.6858
AY+ 988.80620.265811.19388.312674.2613
AY+10N/A0.265810.92798.537778.1273
AY+11N/A0.265810.66218.776382.3127
AY+12N/A0.265810.39639.029186.8499
AY+13N/A0.265810.13049.297291.7750
AY+14N/A0.26589.86469.581397.1286
DRAFTING INFORMATION
The principal author of this revenue procedure is Katherine A. Hossofsky of the Office of
the Associate Chief Counsel (Financial Institutions and Products). For further information
regarding this revenue procedure, contact Ms. Hossofsky on (202) 622-3477 (not a toll-free
number).