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?
Hi Mehak I think Mark's numerical example in the second post in this thread might help you out with your queries: https://www.acted.co.uk/forums/inde...on-unit-reserve-regulations.15096/#post-59551 Best wishes Lynn
