Following are balances taken from the books of East & West Insurance on 31/12/2017 (in JDs);

Reinsurance receivable 9 000, Gross written premiums 25 000, Reinsurance share in paying claims 2000 , Deferred income tax 1800, Net unearned premium reserve 4000, Accrued expenses1250, Income tax provision 3500, Reinsurance share of written premiums 10 000, Net change in unearned premiums reserve 1000,

Recoveries 1000, Statutory reserve 7000, Outstanding claims reserve 2500, Checks under collection 5000, Paid claims12 000, Allocated employees’ expenses 3000, Policies acquisition costs 250.

1. Calculate the total technical provisions

2. Are technical provisions shown on the income statement or balance sheet or both?

3. Calculate net written premiums

4. Are net written premiums shown on the income statement or balance sheet or both?

5. Calculate net paid claims

6. Are net paid claims shown on the income statement or balance sheet or both?

Answer rating: 100% (QA)

1 Total technical provisions Reinsurance receivable Gross written premiums Reinsurance share in payi... View the full answer