Accounting System Washout Program

On a weekly basis, CAR copies and loads the new ceded premium and loss records from the statistical files to the accounting files. During the load process, these ceded records are processed through washout and edit programs in order to determine if a policy has been validly ceded. A pair of records is considered an accounting washout if the following data elements match exactly:

* Outstanding Loss Records should not be washed out

The premium and loss dollar fields must be opposite and net to zero. Because the accounting file only contains those data elements necessary for the residual market functions, many "statistical-only" data fields are not loaded to this system. Thus, not many fields are matched in the accounting washout process. Once a record has been identified as an accounting washout, it is not included in the critical, non-critical, or warning and penalty error listing processes. The online and hardcopy accounting policy history programs display a washout switch so that companies can identify washout records within the accounting system.