Q. What is the difference between a profit commission on an "Accounting Year" basis and an "Underwriting Year" basis?

View solution

Q. What reserves are mentioned in the profit commission statement on an "Accounting Year" basis?

View solution

Q. When are readjustment statements rendered in a profit commission on an "Underwriting Year" basis?

View solution

Q. What can be done with the outstanding liability of an "Underwriting Year" in profit commission calculations?

View solution

Q. What reserves are not included in the profit commission statement on an "Underwriting Year" basis?

View solution

Q. When does the ceding insurer prepare a statement to determine whether a treaty shows a profit or a loss?

View solution

Q. What is the purpose of aggregating the results of subsections under a treaty?

View solution

Q. In addition to aggregating results for subsections under a treaty, what other provision is sometimes made?

View solution

Q. What are the different formulas used to determine the basis for calculating the profit commission payable?

View solution

Q. What happens if the final result is a loss?

View solution

Q. How is the profit commission percentage determined when the final result is a profit?

View solution

Q. What happens to the result of the previous year's statement if it is a loss?

View solution

Q. In which scenario is no profit commission paid in the current year?

View solution

Q. What is the recommended practice for maintaining a breakdown of results for a loss carried forward for a limited period?

View solution

Q. How are the results calculated for treaties on a three-year average basis?

View solution

Q. When is a final profit commission statement rendered for a cancelled treaty?

View solution

Q. What constitutes the result of the third year in the calculation for a three-year average when a treaty is cancelled?

View solution

Q. What is the purpose of retaining a proportion of the ceded premium by the ceding insurer?

View solution

Q. What factors are typically agreed upon in relation to reserves in proportional treaties?

View solution

Q. What is the purpose of adjusting the loss reserve at anniversary dates or in quarterly accounts?

View solution