Page 246 - Reinsurance Management IC85

The Insurance Times

The above produces the rate of premium to be applied
to determine the treaty premium for adjustment at
the end of the treaty year.

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.

c) Minimum Premium
An amount of premium which will be charged
(usually for an excess of loss reinsurance

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 244

ight@ The Insurance Times. 09883398055 / 0988338