Allowance for Uncollectible Premiums Receivable (Notes)

9 Months Ended

Sep. 30, 2020

Allowance for Uncollectible Premiums Receivable Note [Text Block]

Premiums Receivable

The following table provides a roll forward of the allowance for credit losses on our premiums receivable balance for the periods indicated:


($ in thousands)	Quarter ended September 30, 2020		Nine Months ended September 30, 2020
Balance at beginning of period	$	21,000	$	6,400
Cumulative effect adjustment1	—		1,058
Balance at beginning of period, as adjusted	$	21,000	$	7,458
Current period provision for expected credit losses	802		16,369

Write-offs charged against the allowance for credit losses	(996)		(3,272)
Recoveries	194		445
Allowance for credit losses, end of period	$	21,000	$	21,000

1See Note 2. "Adoption of Accounting Pronouncements" above for additional information regarding our adoption of ASU 2016-13.

In Nine Months 2020, we recognized an additional allowance for credit losses of $13.5 million, net of write-offs and recoveries. We based this increase on an evaluation of the recoverability of our premiums receivable in light of (i) the billing accommodations we announced during the first quarter of 2020, and (ii) the impact of certain state regulations that provided for deferral of payments without cancellation for a period up to 90 days and increased earned but uncollected premiums. The billing accommodations included individualized payment flexibility and suspending the effect of policy cancellations, late payment notices, and late or reinstatement fees.