Page 99 - Reinsurance Management IC85

The Insurance Times

to be furnished. The premiums are, normally, not
subject to claim reserves or profit commission.

The premiums are normally calculated at an agreed
rate on the reinsured's premium income. There will
be provisions for payment of deposit premium,
minimum premium and adjustments later. Normally,
deposit premium is payable annually in advance or in
4 quarterly installments.

The adjustments account based on the actual premium
income accounted in respect of the portfolio for the
period concerned is prepared and rendered as soon as
the premium figure is available at the end of the
accounting year.

Q. Distinguish between taxes and charges and
taxes on profits.

Tax regulations in different parts of the world vary
and affect reinsurance business. Taxes and Charges
mean the taxes levied on the direct or reinsurance
premium of an insurer. Such a tax is not levied in
India. This is directly applied on premiums unlike

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