CCIR - Annual Statement Instructions Flashcards
1
Q
Define ‘non-deferrable commission’.
A
Commission not exclusively RELATING TO and VARYING with the acquisition of premium, HENCE not recoverable over the term of the unexpired policy.
2
Q
Ways of accounting for the time value of money in calculating the excess (or deficiency) ratio. (2)
A
- Explicitly calculate investment income and add to excess amount; or,
- discount the undiscounted amounts back to the SAME POINT IN TIME