split policy year

  • A special statistical fiscal period that is a modification of the policy year. In the case of annual business, the policies assigned to a given policy year extending over two calendar years are assigned to that year as a policy year. Since the aggregate of policies assigned to a given policy year extends over two calendar years, the policy year statistics with reference to losses can be split into two divisions, depending on the year in which the accident takes place. This segregation on policy year loss statistics between the two calendar years is known as the split policy year method of analysis.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).