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Negative non unit reserve

Discussion in 'SP2' started by Mehak Mittal, Mar 7, 2019.

  1. Mehak Mittal

    Mehak Mittal Member

    Hi, I need help with understanding the below paragraph from Chapter 19 SP2, page9.
    'The negative reserve represents a ‘loan’ from other contracts which have positive non-unit reserves. The ‘loan’ will be repaid by the emerging future profits from the policy for which the negative non-unit reserve is held.'

    How are NUR loans from other contracts which have positive NUR?
     
    Mehak Mittal, Mar 7, 2019
    #1
  2. Lynn Birchall

    Lynn Birchall ActEd Tutor Staff Member

    Lynn Birchall, Mar 11, 2019
    #2

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