SSAP 53: Premiums Flashcards Preview

Exam 6 > SSAP 53: Premiums > Flashcards

Flashcards in SSAP 53: Premiums Deck (7)
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1

Written premium recording date

Effective date of policy (exception -- WC)

2

Monthly pro rata method

1/24 in effective month, 1/12 the next 11 months, 1/24 in final effective month

3

Additional premiums recording date

Effective date of change

4

Flat fee accounting

Not premium but "other income", except if policy can be cancelled for nonpayment or fee is refundable if cancelled

5

Earned but Uncollected Premiums

Insurer chooses not to cancel policies for nonpayment of premium for longer than 30 days.

6

Advance Premiums

Collected before effective date, recorded as liability; not considered income until due

7

Prepaid Legal Expense plans

Income when due but not prior to effective date of policy