Question
a.
The accounting year basis includes all transactions for the same treaty period, while the underwriting year basis includes transactions of a specific underwriting year.
b.
The accounting year basis considers cash reserves, while the underwriting year basis considers statistical reserves.
c.
The accounting year basis requires adjustments in subsequent years, while the underwriting year basis requires readjustment statements until liability expires.
d.
The accounting year basis involves deferred preparation of the first statement, while the underwriting year basis involves closing accounts after a specified period.
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Q. What is the difference between a profit commission on an "Accounting Year" basis and an "Underwriting Year" basis?
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