SSAP 53: Premiums Flashcards
1
Q
Written premium recording date
A
Effective date of policy (exception – WC)
2
Q
Monthly pro rata method
A
1/24 in effective month, 1/12 the next 11 months, 1/24 in final effective month
3
Q
Additional premiums recording date
A
Effective date of change
4
Q
Flat fee accounting
A
Not premium but “other income”, except if policy can be cancelled for nonpayment or fee is refundable if cancelled
5
Q
Earned but Uncollected Premiums
A
Insurer chooses not to cancel policies for nonpayment of premium for longer than 30 days.
6
Q
Advance Premiums
A
Collected before effective date, recorded as liability; not considered income until due
7
Q
Prepaid Legal Expense plans
A
Income when due but not prior to effective date of policy
