Question

What is the formula to calculate profit to the treaty?

a.

Profit to the Treaty = Earned premium - Incurred claims - Ceding commission

b.

Profit to the Treaty = Earned premium + Incurred claims - Ceding commission

c.

Profit to the Treaty = Earned premium - Incurred claims + Ceding commission

d.

Profit to the Treaty = Earned premium + Incurred claims + Ceding commission

Answer: (a).Profit to the Treaty = Earned premium - Incurred claims - Ceding commission Explanation:The formula to calculate profit to the treaty is Profit to the Treaty = Earned premium - Incurred claims - Ceding commission.

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Q. What is the formula to calculate profit to the treaty?

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