NAIC.SSAP-53
This statement establishes general statutory accounting principles for the recording and recognition of premium revenue for property and casualty contracts.
Study Tips
The CAS syllabus citation for this article is confusing. The syllabus says this is a new reading, however, it actually isn't. The year of publication for the manual changes each year but the content generally does not. We will let you know if there is a major change.
I could barely find anything worthy of an exam question in this reading but I didn't want to leave the wiki page completely blank so: 2 BattleCards, 10 minutes max
BattleTable
- this reading has not been tested on any exam from the year 2012 to Fall 2019 when the exams stopped being published.
reference part (a) part (b) part (c) part (d) no prior questions
Full BattleQuiz You must be logged in or this will not work.
In Plain English!
Earned But Unbilled Premium (EBUB) is an estimate of audit premium for WC:
- written/earned premium is adjusted by the EBUB amount
- after policy expiration, an audit is performed and EBUB is adjusted by the appropriate amount
- EBUB is then immediately recognized in the financial statements
A Premium Deficiency Reserve (PDR) is a liability equal to the amount by which future outflows exceed future inflows (shout-out to gsawhney!)
- outflows include: losses, loss adjustment expenses, commissions and other acquisition costs, maintenance costs (4 items)
- inflows include: recorded unearned premium reserve, future installment premiums on existing policies (2 items)
Full BattleQuiz You must be logged in or this will not work.
