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Appendix 4.2: Eighths basis

2013 year of account 1st quarter 2nd quarter 3rd quarter 4th quarter Total

Premium 100,000 200,000 300,000 200,000 800,000
Premium portfolio –450,000 –450,000
withdrawal
Premium
portfolio entry
Total premium 100,000 200,000 300,000 –250,000 350,000
received by reinsurers
4
Chapter 2014 year of account 1st quarter 2nd quarter 3rd quarter 4th quarter 1,500,000
Total
300,000
250,000
Premium
550,000
400,000
Premium portfolio –862,500 –862,500
withdrawal
Premium 450,000 450,000
portfolio entry
Total premium 750,000 250,000 400,000 –312,000 1,087,500
received by reinsurers

Calculation
1st quarter 2013 2nd quarter 2013 3rd quarter 2013 4th quarter 2013 Reference copy for CII Face to Face Training
100,000 200,000 300,000 200,000
Earned Unearned Earned Unearned Earned Unearned Earned Unearned
7/8ths 1/8th 5/8ths 3/8ths 3/8ths 5/8ths 1/8th 7/8ths

87,500 12,500 125,000 75,000 112,500 187,500 25,000 175,000
1st quarter 2014 2nd quarter 2014 3rd quarter 2014 4th quarter 2014
300,000 250,000 400,000 550,000
Earned Unearned Earned Unearned Earned Unearned Earned Unearned
7/8ths 1/8th 5/8ths 3/8ths 3/8ths 5/8ths 1/8th 7/8ths
262,500 37,500 156,250 93,750 150,000 250,000 68,750 481,250