PIN 5.4.7 PIN 5.4.7
Insurermust treat as a liability, the premium liability, which is the value of future claim payments and associated direct and indirect settlement costs, arising from future events insured under policies that are in force as at the Solvency Reference Date.Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
PIN 5.4.7 Guidance
The liability referred to in PIN Rule 5.4.7 is commonly represented by insurers as two separate provisions, the unearned premium provision and the premium deficiency provision. The sum of the two provisions is sometimes referred to as the unexpired risk reserve, though this term is also sometimes used to describe the premium deficiency provision alone.
Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]