All policies offered by an insurer in a given line of business have a coverage period...

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All policies offered by an insurer in a given line of business have a coverage period of one year. Below there are aggregate amounts of premium written within this line of business during subsequent quarters of 2015, and in January 2016. Calculate unearned premium reserve as of January 31, 2016. Year Quarter Q1 2015 Q2 Q3 Q4 2016 January Premium written 13.5 million 13.2 million 14.4 million 15.6 million 4.8 million Assume that: premium written is evenly distributed over the period of a quarter (in case of all quarters of 2015), and also evenly distributed over January 2016, risk is evenly distributed over the whole coverage period acquisition, administration and claims handling costs are evenly distributed over the whole coverage period as well Present the result accurate to two decimal places. All policies offered by an insurer in a given line of business have a coverage period of one year. Below there are aggregate amounts of premium written within this line of business during subsequent quarters of 2015, and in January 2016. Calculate unearned premium reserve as of January 31, 2016. Year Quarter Q1 2015 Q2 Q3 Q4 2016 January Premium written 13.5 million 13.2 million 14.4 million 15.6 million 4.8 million Assume that: premium written is evenly distributed over the period of a quarter (in case of all quarters of 2015), and also evenly distributed over January 2016, risk is evenly distributed over the whole coverage period acquisition, administration and claims handling costs are evenly distributed over the whole coverage period as well Present the result accurate to two decimal places.

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To calculate the unearned premium reserve as of January 31 2016 we need to determine the tot... View the full answer