Page 133 - Reinsurance Management IC85
P. 133
100,000 Reinsurance Management
100,000
100,000 10,000
100,000 10,000
100,000 10,000
Line = 100,000 10,000
10,000
Quota share = 100,000 (ceding
company limit = 10%)
b) When the risk has been accepted, premium
received by the insurer becomes written
premium.
Premium for the expired period is earned
premium.
Eg. If a policy incepts on 1st of January and
company receives a premium of Rs.1200, then
on 31st May:
The written premium is Rs.1200
The earned premium would be for 5 months of
expired risk that is Rs.500.
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