ACE (Seminar book) Page 76
Can someone who attended the seminar explain the solution? ( I don't know if I can replicate the question here without copyright issues from Jacob/ben)
The question is related to direct (accural) premiums and cash (collected) premium.
In our study note, accural premium= direct premium+net premium from rein
If rein prem paid is 15, and reinsurance exp allowance is 5, shouldn't it be net of 10? The answer only deduct 15 out, but I thought it should deduct 10?
Any advise will be appreciated! Thanks