Abstract
Accounting rules specify that extended warranty contracts with terms of thirteen months or longer use loss payment patterns to determine the unearned premium reserve. These payment patterns should incorporate cancellations. Ignoring cancellations overstates earned premium and understates the unearned premium reserve.
Volume
Spring 2007
Page
73-87
Year
2007
Categories
Actuarial Applications and Methodologies
Accounting and Reporting
Annual Statement
Actuarial Applications and Methodologies
Reserving
Unearned Premium Reserves
Business Areas
Warranty/Service Contracts
Publications
CAS 2007 Spring Forum
