Question

When is a surplus normally removed from a non-proportional treaty account?

a.

Immediately after the year to which it relates

b.

After one year from the year to which it relates

c.

After two years from the year to which it relates

d.

After three years from the year to which it relates

Answer: (d).After three years from the year to which it relates Explanation:A surplus in a non-proportional treaty account is not normally removed from the fund until three years after the year to which it relates. This timeframe allows sufficient information to be available before transferring the surplus to revenue reserves. The long duration of claims reporting necessitates this waiting period to ensure accurate assessment of surplus.

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Q. When is a surplus normally removed from a non-proportional treaty account?

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