Calculation of Unearned Premium Reserves on Interim Audited Risks - Monthly, Quarterly and Semi-Annual Basis

Discussion of a method to properly determine the level of the Unearned Premium Reserve for audited risks. Unearned Premium Reserve table factors are adjusted for the delay between the end of the payroll period and the entry of the payroll premium on the insurance company's books. Premiums are then earned evenly and correctly over the policy term Examples are given for quarterly audited, monthly audited and semi-annually audited risks.