Q&A Bank 4.22

Discussion in 'SA3' started by ActEdStudent, Mar 29, 2008.

  1. ActEdStudent

    ActEdStudent Member

    Would it be ok for this question to assume that the non-commission expenses are paid according to the earnings pattern rather than at the point the policy is written? This was the assumption I made which gives slightly different expense figures.
     
  2. Ian Senator

    Ian Senator ActEd Tutor Staff Member

    Might be reasonable if the expenses are claim-related, but as the expenses are expressed as a proportion of written premium, I think I'd stick to that.
     

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