Chapter 6, Section 5.2 Net Premiums

Discussion in 'CT5' started by Michael_14, Mar 21, 2007.

  1. Michael_14

    Michael_14 Member

    In section 5.2, the net premiums in both examples are calculated taking into account all future bonuses.

    However, in section 5.3 it says net premiums should be used to calculate net premium reserves, but in calculating these net premiums we should ignore all bonuses.

    Why then in section 5.2 did we calculate net premiums including future bonuses? What was the point if we should never do this?

    Regards,
    Michael
     

Share This Page