B. Policy Year 1. Any claim action arising on a policy that became effective in policy year Z is accounted for in the "policy year Z”file. 2. If policy year z goes from Jan .1, Z to DeC 31, Z, and if all policies are effective for one year the exposure period for policy year z goes from Jan. 1, Z to Dec. 31 Z+1(i.e. 24 months) 3. If all issue dates and accidents are uniformly distributed the midpoint of PY(z)is Dec 31, Z or Jan. 1, Z+1 4. Thus, you do not have complete PY(z)data until Dec 31 Z+1(and then it is still immature) 5. However, pricing is done for policy years, so having policy year data is a consistent basis 1111 B. Policy Year 1. Any claim action arising on a policy that became effective in policy year Z is accounted for in the “policy year Z” file. 2. If policy year Z goes from Jan. 1, Z to Dec. 31, Z, and if all policies are effective for one year, the exposure period for policy year Z goes from Jan. 1, Z to Dec. 31, Z+1 (i.e. 24 months). 3. If all issue dates and accidents are uniformly distributed, the midpoint of PY(Z) is Dec. 31, Z or Jan. 1, Z+1. 4. Thus, you do not have complete PY(Z) data until Dec. 31, Z+1 (and then it is still immature). 5. However, pricing is done for policy years, so having policy year data is a consistent basis