Exam DISC-IA Practice Question 15
Study guide: Exam DISC-IA
At year end an insurer estimates that its retrospectively rated workers compensation policies will produce $250,000 of return premium for the expired part of their terms. How does SSAP No. 66 have it record the estimate?
- A) As part of the change in unearned premium, through written or earned premium
- B) As loss adjustment expense, because the adjustment depends on the losses
- C) Not at all until the retrospective premium is calculated and billed
- D) As a direct charge to surplus that bypasses the statutory income statement
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