Should Premium Reserve be UPR or URR?

I'm rather confused with what is right. Solvency 2 says UPR will be replaced by URR. However, most of the answers in our Q&A Bank still uses UPR eg Qn 6.5iii. Are we supposed to provide answers based on old regime rather than the new Solvency 2 regime?

What should we use during exams? Or are we supposed to use UPR and URR for different purpose eg published accounts vs statutory accounts vs tax returns?

 

S2 did state that, but only for capital calculations. UPR and URR is still two fundamentally different thing.

Also, there is no reference to S2 in the question ...

 

Thanks for your reply Jensen. I don't quite understand what you mean by URR is only for capital calculation. Does that mean that that's only for statutory accounts but not for company act accounts? So company act accounts will still be on UPR?

 

Companies generally show UPR only in public accounts (if UPR < URR).

 

Tks Jensen!

 

No worries. Your ST7 notes have more details.