NAIC.SSAP-53 - Revision history

Graham at 15:50, 27 January 2026

2026-01-27T15:50:50Z

Graham: /* Low Probability Exam Items */

2026-01-22T01:18:05Z

‎Low Probability Exam Items

Graham at 16:51, 19 January 2026

2026-01-19T16:51:07Z

Graham: /* Low Probability Exam Items */

2026-01-12T00:11:23Z

‎Low Probability Exam Items

Graham: /* Things You Should Learn */

2026-01-11T15:14:22Z

‎Things You Should Learn

Graham: /* Things You Should Learn */

2026-01-11T15:13:28Z

‎Things You Should Learn

Graham: /* Low Probability Exam Items */

2026-01-08T23:56:10Z

‎Low Probability Exam Items

Graham: /* Low Probability Exam Items */

2026-01-08T23:55:22Z

‎Low Probability Exam Items

Graham: /* Basic Facts */

2026-01-08T23:54:57Z

‎Basic Facts

Graham: /* In Plain English! */

2026-01-08T23:54:15Z

‎In Plain English!

@@ Line 43: / Line 43: @@
 [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=NAIC&suffix=SSAP-53&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>
-&nbsp;&nbsp;[https://www.battleacts6us.ca/vanillaforum6us/categories/naic-ssap-53<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
+&nbsp;&nbsp;[https://battleacts.discourse.group/c/candidates-6u/naic-ssap-53/224<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
 ==In Plain English!==

@@ Line 65: / Line 65: @@
 * ''When the anticipated losses, loss adjustment expenses, commissions and other acquisition costs, and maintenance costs <u>exceed</u> the recorded unearned premium reserve, and any future installment premiums on existing policies, a '''premium deficiency reserve''' shall be recognized <u>by recording</u> an additional liability for the deficiency, with a corresponding charge to operations.
-=== Low Probability Exam Items ===
+=== Lower Probability Exam Items ===
 This is another wiki article that was so short that Ian-the-Intern and I decided to pull out some extra information. These items are not in the Battle Cards because we didn't want you to stress out and try to memorize all of them. They are pretty obvious and probably won't be tested. Just read them over a few times. It just gives you a little extra flavor for the kinds of things included in the SSAP-53 document.

@@ Line 5: / Line 5: @@
 [https://battleacts.discourse.group/c/candidates-6u/naic-ssap-53/224<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
 [https://www.battleacts6us.ca/vanillaforum6us/categories/naic-ssap-53 ''&nbsp;&nbsp; (Or click here for Legacy Forum &ndash; no longer monitored)''</span>]
 {| class='wikitable' style='background-color: navajowhite;

← Older revision		Revision as of 00:11, 12 January 2026
Line 62:		Line 62:

	=== Low Probability Exam Items ===		=== Low Probability Exam Items ===
		+
		+	This is another wiki article that was so short that Ian-the-Intern and I decided to pull out some extra information. These items are not in the Battle Cards because we didn't want you to stress out and try to memorize all of them. They are pretty obvious and probably won't be tested. Just read them over a few times. It just gives you a little extra flavor for the kinds of things included in the SSAP-53 document.

	{\| class="wikitable"		{\| class="wikitable"

@@ Line 46: / Line 46: @@
 '''Earned But Unbilled Premium''' ''(EBUB)'' is an <u>estimate</u> of audit premium for WC:
-* '''adjust''' written/earned premium by the EBUB amount, then...
+* <span style="color: red;">'''adjust'''</span> written/earned premium by the EBUB amount, then...
-* '''adjust''' the EBUB amount after policy expiration, according to an audit
+* <span style="color: red;">'''adjust'''</span> the EBUB amount after policy expiration, according to an audit
-* '''recognize''' EBUB immediately in financial statements
+* <span style="color: green;">'''recognize'''</span> EBUB immediately in financial statements
 A '''Premium Deficiency Reserve''' ''(PDR)'' is a <u>liability</u> equal to the amount by which future outflows <u>exceed</u> future inflows

@@ Line 75: / Line 75: @@
 |-
 | '''Workers’ compensation installment recording'''
-| ¶4
+| paragraph 4
 | WC premiums may be recorded on an installment basis aligned with billing frequency rather than fully at inception.
 | Common exam distraction topic when comparing premium timing methods.
 |-
 | '''Prepaid legal expense plans'''
-| ¶5
+| paragraph 5
 | Premiums recognized on a gross basis when due, but no earlier than the coverage effective date.
 | Niche exception; unlikely alone, but could appear in a “which is correct?” list.
 |-
 | '''Unearned premium reserve methods'''
-| ¶6–8
+| paragraph 6–8
 | Unearned premium reserve must be established using either daily pro rata or monthly pro rata methods, with prescribed mechanics.
 | Core P&C concept; mechanics often tested elsewhere even if not labeled SSAP 53.
 |-
 | '''Monthly pro rata fractions'''
-| ¶8(b)
+| paragraph 8(b)
 | Example unearned fractions: January 1/24, February 3/24, March 5/24 for one-year policies.
 | Classic calculation trap; very testable in isolation.
 |-
 | '''Endorsements and coverage changes'''
-| ¶9
+| paragraph 9
 | Additional premiums from endorsements recorded on the endorsement effective date and unearned portion reserved.
 | Reinforces timing logic and consistency with unearned premium treatment.
 |-
 | '''Earned but uncollected premium'''
-| ¶14
+| paragraph 14
 | Premium is earned while coverage remains in force even if not yet collected; charged to expense if uncollectible.
 | Important distinction from EBUB; conceptual clarity question potential.
 |-
 | '''Advance premiums'''
-| ¶15
+| paragraph 15
 | Premiums paid before the effective date are liabilities and not income until due.
 | Simple liability vs income classification issue.
 |-
 | '''Perpetual fire insurance deposits'''
-| ¶16
+| paragraph 16
 | At least 90% of premium deposits must be reported as a liability.
 | Highly specific, but a clean rule if tested.
 |-
 | '''PDR disclosure when investment income is used'''
-| ¶18
+| paragraph 18
 | Disclosure required if anticipated investment income is used in PDR calculations, even if no reserve is recorded.
 | Subtle disclosure rule; most exam-worthy nuance in the section.

@@ Line 70: / Line 70: @@
 |-
 | '''Definition of written premium'''
-| ¶3
+| paragraph 3
 | Written premium is the contractually determined amount charged for the effective period, subject to later audit adjustments.
 | Foundational definition; helps distinguish written vs earned vs EBUB if tested indirectly.

← Older revision		Revision as of 23:54, 8 January 2026
Line 60:		Line 60:

	* ''When the anticipated losses, loss adjustment expenses, commissions and other acquisition costs, and maintenance costs <u>exceed</u> the recorded unearned premium reserve, and any future installment premiums on existing policies, a '''premium deficiency reserve''' shall be recognized <u>by recording</u> an additional liability for the deficiency, with a corresponding charge to operations.		* ''When the anticipated losses, loss adjustment expenses, commissions and other acquisition costs, and maintenance costs <u>exceed</u> the recorded unearned premium reserve, and any future installment premiums on existing policies, a '''premium deficiency reserve''' shall be recognized <u>by recording</u> an additional liability for the deficiency, with a corresponding charge to operations.
		+
		+	=== Low Probability Exam Items ===
		+
		+	{\| class="wikitable"
		+	! Topic omitted from study guide
		+	! Where in SSAP 53
		+	! What the source says
		+	! Why it may still matter (slightly)
		+	\|-
		+	\| '''Definition of written premium'''
		+	\| ¶3
		+	\| Written premium is the contractually determined amount charged for the effective period, subject to later audit adjustments.
		+	\| Foundational definition; helps distinguish written vs earned vs EBUB if tested indirectly.
		+	\|-
		+	\| '''Workers’ compensation installment recording'''
		+	\| ¶4
		+	\| WC premiums may be recorded on an installment basis aligned with billing frequency rather than fully at inception.
		+	\| Common exam distraction topic when comparing premium timing methods.
		+	\|-
		+	\| '''Prepaid legal expense plans'''
		+	\| ¶5
		+	\| Premiums recognized on a gross basis when due, but no earlier than the coverage effective date.
		+	\| Niche exception; unlikely alone, but could appear in a “which is correct?” list.
		+	\|-
		+	\| '''Unearned premium reserve methods'''
		+	\| ¶6–8
		+	\| Unearned premium reserve must be established using either daily pro rata or monthly pro rata methods, with prescribed mechanics.
		+	\| Core P&C concept; mechanics often tested elsewhere even if not labeled SSAP 53.
		+	\|-
		+	\| '''Monthly pro rata fractions'''
		+	\| ¶8(b)
		+	\| Example unearned fractions: January 1/24, February 3/24, March 5/24 for one-year policies.
		+	\| Classic calculation trap; very testable in isolation.
		+	\|-
		+	\| '''Endorsements and coverage changes'''
		+	\| ¶9
		+	\| Additional premiums from endorsements recorded on the endorsement effective date and unearned portion reserved.
		+	\| Reinforces timing logic and consistency with unearned premium treatment.
		+	\|-
		+	\| '''Earned but uncollected premium'''
		+	\| ¶14
		+	\| Premium is earned while coverage remains in force even if not yet collected; charged to expense if uncollectible.
		+	\| Important distinction from EBUB; conceptual clarity question potential.
		+	\|-
		+	\| '''Advance premiums'''
		+	\| ¶15
		+	\| Premiums paid before the effective date are liabilities and not income until due.
		+	\| Simple liability vs income classification issue.
		+	\|-
		+	\| '''Perpetual fire insurance deposits'''
		+	\| ¶16
		+	\| At least 90% of premium deposits must be reported as a liability.
		+	\| Highly specific, but a clean rule if tested.
		+	\|-
		+	\| '''PDR disclosure when investment income is used'''
		+	\| ¶18
		+	\| Disclosure required if anticipated investment income is used in PDR calculations, even if no reserve is recorded.
		+	\| Subtle disclosure rule; most exam-worthy nuance in the section.
		+	\|}
		+

	[https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=NAIC&suffix=SSAP-53&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>		[https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=NAIC&suffix=SSAP-53&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>