Fall 2016 Qu6

AndrewLAndrewL
in Dutil.FA

  1. Could you please explain sample 1 for premium to pool. Specifically "So that at the end of each month the insurer must pay or receive the difference based on the result of the pool and what they have ceded."

  2. Sample 3 for premium to pool and battlequiz say that premium transferred exclude fees like commissions/agents fees. However, RSP members receive an expense allowance. Is not it contradictory?

Comments

  • Staff-T1Staff-T1

    1) I think this is in reference to possible overcontribution of premium to the RSP, or midterm cancellations/ addition of endorsements.
    2) Well, the transferred premiums are excluded and members therefore received an allowance. Seems logical to me

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