1. 

   Bernadette Pieterse Member

   Hi everyone,
   
   For the Net Premium Reserves:
   1) Should you calculate your net premium using the reserving basis and not the premium basis used to calculate the actual (gross premium)?
   2) Should you include past bonuses when calculating the reserve and ignore future bonuses (including terminal bonuses)?
   
   Thanks!

    

   Bernadette Pieterse, Aug 29, 2019

   #1
2. 

   Bev Butler ActEd Tutor Staff Member

   Hi Bernadette.
   You calculate premiums using the premium basis and reserves using the reserving basis. Literally follow what it says in the question.
   Past bonuses cannot be taken away from the policyholder once they have been declared, so yes, include them (although again it should make clear in the question what bonuses have been declared etc).
   Bev

    

   Bev Butler, Sep 2, 2019

   #2
3. 

   Bernadette Pieterse Member

   Thank you!

    

   Bernadette Pieterse, Oct 5, 2019

   #3

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in