Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity B account for the insurance contract with Entity C? A. using the modified version of the general model applicable for onerous insurance contracts B. using the general model C. using a modified version of (a) or (b) applicable to reinsurance contracts held D. using the premium allocation approach
Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity B account for the insurance contract with Entity C? A. using the modified version of the general model applicable for onerous insurance contracts B. using the general model C. using a modified version of (a) or (b) applicable to reinsurance contracts held D. using the premium allocation approach
Chapter10: Managing Property And Liability Risk
Section10.5: Buy Specialized Protection For Other Loss
Problem 1CC
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Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity B account for the insurance contract with Entity C?
A. using the modified version of the general model applicable for onerous insurance contracts
B. using the general model
C. using a modified version of (a) or (b) applicable to reinsurance contracts held
D. using the premium allocation approach
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