just curious as to why this question isn’t in the revision booklets? Also I seem to struggle with calculating net premium reserves when bonuses are involved. Is there a general rule? Ie do I include the future bonuses, or just the bonus for the year? Or calculate solely of the basic sum assured Thanks
Bonuses already declared are included in net premium reserves because they can't be retracted. But future bonuses need not be included because the company can decide not to declare more bonus. (Although there are some side effects of this, but that's covered in later papers)
Some questions (or parts of questions) have been removed from the revision booklets and ASET as they're no longer relevant to the CM1 syllabus. While part (i) of this question is in revision booklet 8, it appears that part (ii) has been removed for this reason.