S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. S2: Outward Reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. S3: Premiurn deficiency arises when the unearned premium reserve is less than the estimated claims related expenses. a. Only S3 is incorrect b. All statements are correct c. Only S2 is correct d. Only S3 is correct e. Only S1 is incorrect f. Only S2 is incorrect g. All statements are incorrect h. Only S1 is correct
S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. S2: Outward Reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. S3: Premiurn deficiency arises when the unearned premium reserve is less than the estimated claims related expenses. a. Only S3 is incorrect b. All statements are correct c. Only S2 is correct d. Only S3 is correct e. Only S1 is incorrect f. Only S2 is incorrect g. All statements are incorrect h. Only S1 is correct
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant.
S2: Outward Reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates.
S3: Premiurn deficiency arises when the unearned premium reserve is less than the estimated claims related expenses.
a. Only S3 is incorrect
b. All statements are correct
c. Only S2 is correct
d. Only S3 is correct
e. Only S1 is incorrect
f. Only S2 is incorrect
g. All statements are incorrect
h. Only S1 is correct
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