Exam DISC-IA Practice Question 13
Study guide: Exam DISC-IA
On December 20, 2025, an insurer receives full payment of $6,000 for an annual policy that takes effect January 1, 2026. How does the payment appear in the insurer's December 31, 2025 statutory statements?
- A) As 2025 written premium, all of it placed in the unearned premium reserve
- B) As 2025 written premium, of which the 11 days since payment are earned
- C) As an advance premium liability, outside written premium and the reserve
- D) As other income, because the insurer has not yet provided any coverage
Answer this question and see the worked solution