H
hanshua
Member
in the notes, it states that a compound bonus approach defers more of the distribution of surplus than a simple approach, and a super-compound approach defers more than a compound approach.
I would like to know firstly how the bonus work and how it defer the distribution of surplus, cuz for my understanding, as soon as the bonus declared by the insurer, you can simply cash out of the bonus, however here it says it defer the distribution of surplus, I am confused..
2nd, why the statement above is true? thank you everyone!!
I would like to know firstly how the bonus work and how it defer the distribution of surplus, cuz for my understanding, as soon as the bonus declared by the insurer, you can simply cash out of the bonus, however here it says it defer the distribution of surplus, I am confused..
2nd, why the statement above is true? thank you everyone!!