Question

What does the Unearned Premium Reserve represent?

a.

Premiums earned but not yet received

b.

Premiums written but not yet earned

c.

Premiums received but not yet earned

d.

Premiums received but not yet paid out in claims

Posted under IC 14 Regulations of Insurance Business

Answer: (b).Premiums written but not yet earned Explanation:The Unearned Premium Reserve represents premiums written but not yet earned, as not all policies renew or end exactly at the close of the financial year, leading to some premium being "unearned" at the time the accounts are finalized.

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Q. What does the Unearned Premium Reserve represent?
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