CCIR - Annual Statement Instructions

Question 1

Define ‘non-deferrable commission’.

Answer 1

Commission not exclusively RELATING TO and VARYING with the acquisition of premium, HENCE not recoverable over the term of the unexpired policy.

Question 2

Ways of accounting for the time value of money in calculating the excess (or deficiency) ratio. (2)

Answer 2

• Explicitly calculate investment income and add to excess amount; or,
• discount the undiscounted amounts back to the SAME POINT IN TIME