Unearned CY Exposure/Premium Calculation

[twrecks81]

Reading the Werner/Modlin paper, I find it hard to digest their Unearned CY Exposure and Premium calculations. It seems to me that it overstates the unearned amounts by not removing the unearned portion of the written values to be earned in the next calendar year.

Their Formula:
CY Written - CY Earned + Unearned @ Begining of Year

I would add to that:
CY Written - CY Earned + Unearned @ Begining of Year - Unearned @ Begining of Next Year


I may be completely wrong, so, if anyone can, please help me understand what I am missing.


Thanks in advance!

[Vorian Atreides]

You might note that

CY Written - CY Earned = Unearned @ Beg of Next Year.

[RealFolkBlues]

/agree.