2018 Fall Question # 14
There is a bullet point in this question that describes net income amounts of protected cells and aggregate write-ins for underwriting deductions as being 0. I have a few questions about this bullet point. The first one is what exactly are protected cells? The second is if this amount is above 0 dollars what portion of Net Income would it be classified under? And finally, would you account for these as an added amount or a subtracted amount from what ever portion of NI that it is classified under?
Comments
I don't know why they included that piece of information. It's something nobody would even have thought about. But if that value isn't 0 then it should be subtracted from U/W income.
First, the definition of protected cell:
And second, an entry related to protected cells appears 3 times on the Income Statement: