Insurance balance sheet

Question 1

What are the three headings for an insurance balance sheet

Answer 1

Assets, liabilities, equity

Question 2

What is an intangible asset

Answer 2

The brand

Question 3

What are investments

Answer 3

An asset - shares and bonds

Question 4

What is reinsurers share of insurance contract liabilities

Answer 4

An asset - where the reinsurer owes you money

Question 5

What is deferred acquisition costs (EXAM QUESTION)

Answer 5

An asset - the commission you’ve already paid to the broker on the unearned premium e.g policy incepts on 1st july. Unearned premium £6k. commission is 10% you pay the broker immediately.

Question 6

What is provision of unearned premium (EXAM QUESTION)

Answer 6

A liability -

Question 7

What is a provisions for losses and loss adjustment expenses

Answer 7

A Liability - claim reserves

Question 8

What are reinsurance liabilities

Answer 8

A liability - what you need to pay reinsrers

Question 9

What is debtors

Answer 9

Debt to you - an asset

Question 10

What is creditors

Answer 10

Credit - a liability

Question 11

What is equity

Answer 11

Shareholder capital + reserves