Question

What is deducted from earned premiums?

a.

Premiums received from policyholders after the year-end

b.

Premiums paid in advance for future years

c.

Reserve for unexpired risks at the end of the current year

d.

Reserve for unexpired risks brought forward from the previous year

Posted under IC85 Reinsurance Management

Answer: (c).Reserve for unexpired risks at the end of the current year Explanation:The reserve for unexpired risks at the end of the current year is deducted from earned premiums.

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