Difference between LRC/Net Prem Liab and APV UCAE/LIC
Is there a difference between the two or are these terms interchangeable? Aside from the difference in formula, do they cover different things?
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Is there a difference between the two or are these terms interchangeable? Aside from the difference in formula, do they cover different things?
Comments
A big simplification but conceptually:
So the "definitions" or liabilitiy captured is the same
LIC - unpaid claims on claims incurred @ evaluation date for policies earned
LRC - future claims and contract obligations @ evaluation date for policies in-force but not yet earned.
yup pretty much