Question

How does the calculation for unexpired risks in financial accounting differ from the portfolio withdrawal calculation?

a.

Commissions are deducted in the portfolio withdrawal calculation only

b.

The fixed percentage calculation is used in financial accounting

c.

The unexpired exposure is not considered in financial accounting

d.

Long or short term cessions are accounted for differently in financial accounting

Posted under IC85 Reinsurance Management

Answer: (a).Commissions are deducted in the portfolio withdrawal calculation only Explanation:The calculation for unexpired risks in financial accounting is similar to the portfolio withdrawal calculation, except that in the portfolio withdrawal calculation, commissions are also deducted.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How does the calculation for unexpired risks in financial accounting differ from the portfolio withdrawal calculation?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the purpose of the clean-cut method in reinsurance?

View solution

Q. What is portfolio loss withdrawal?

View solution

Q. What is portfolio loss entry?

View solution

Q. When is the clean-cut method typically followed?

View solution

Q. What happens to premium reserves in the clean-cut method?

View solution

Q. What is the range of interest that ceding insurers allow reinsurers in treaties with provision for retention of reserves?

View solution

Q. When is the interest credited to reinsurers in treaties with provision for retention of reserves?

View solution

Q. How is the net return to the reinsurer affected by tax regulations?

View solution

Q. What is the nature of accounts under non-proportional treaties?

View solution

Q. What are non-proportional treaty accounts not subject to?

View solution

Q. How are premiums calculated in reinsurance agreements?

View solution

Q. How are premiums calculated in reinsurance agreements?What is the purpose of a deposit premium in reinsurance agreements?

View solution

Q. How is the adjustment account in reinsurance calculated?

View solution

Q. What is the unit of currency expressed in a treaty agreement?

View solution

Q. Under what conditions can a ceding insurer revert to accounting in original currencies?

View solution

Q. Who is responsible for paying brokerage in reinsurance placements?

View solution

Q. How are statements of accounts and balances typically sent in reinsurance placements?

View solution

Q. How is brokerage usually indicated in statements of accounts?

View solution

Q. How do brokers settle balances due to reinsurers?

View solution

Q. What is the purpose of an accounts flow chart in inward accounts management?

View solution
View All MCQs on IC85 Reinsurance Management

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Automotive Engine Design

Embark on a thrilling exploration of Automotive Engine Design, where the intricacies...

Avionics Engineering

Soar into the world of aviation technology with our Avionics Engineering category....

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....