• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

April 2011, Q2

E

echo20

Member
How come the question says the total liabilities for the company are £250m, but the sum of reserves comes to £424.5m ?
 
echo20 said:
How come the question says the total liabilities for the company are £250m, but the sum of reserves comes to £424.5m ?
Click to expand...

You don't take the unit reserves into account here because on a unit linked policy, the unit fund (ie the unit reserve) belongs to the policyholder as they take on all of the investment risk.

I am thinking the total liabilities should be the sum of the Annuity and Term assurance reserves + positive value of the non-unit reserves.
 
You must log in or register to reply here.
Back
Top