The Method Used to Account for Insurance and Reinsurance Contracts

question 203

Multiple Choice

The method used to account for insurance and reinsurance contracts that do not transfer insurance risk is referred to as:

• A) Accounted revenue
• B) Premium deficiency
• C) Retained balance
• D) Deposit accounting

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Definitions:

Too Broad

Refers to definitions, descriptions, or categorizations that are overly inclusive, encompassing more than what is appropriate or intended.

Underwater

Situated, occurring, or done beneath the surface of the water.

Sentence

In linguistics, a set of words that is complete in itself, typically containing a subject and predicate, conveying a statement, question, exclamation, or command.

Fallacy of Composition

An error in reasoning that occurs when it is assumed that what is true for the individual parts must also be true for the whole.