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by tobycm
Tue Nov 11, 2014 11:04 am
Forum: Opinions
Topic: Insurance Acounting query (minimum earned premium policy)
Replies: 2
Views: 6596

Insurance Acounting query (minimum earned premium policy)

Normally earned/unearned premium gets calculated on pro-rata basis. My question is, if the policy is on short rate or is a minimum earned premium policy; for accounting purpose will the earned premium still be calculated on pro-rata? In other words, let’s say for a 100% minimum earned policy (annual...