Question 6

1 Point

When Commissions are deferred, the financial statements change by a:

1. decrease revenue and increase assets
2. decrease liabilities and decrease assets
3. decrease expenses and increase assets
4. Commissions are not deferrable

Question 7

1 Point

The offset account used for the dual financial entry with Deferred Policy Acquisition Costs is:

1. Broker Receivable
2. Broker Payable
3. Change in DPAC
4. DPAC

Question 8

1 Point

Which Accounting Principle does insurance accounting follow when revenue is recognized over the duration of the policy?

1. Realization
2. Cost
3. Dual Aspect
4. Materiality

Question 9

2 Points

Which financial statement and section would you find the Direct IBNR Reserve Balance?

Bottom of Form

Question 10

2 Points

Which financial statement and section would you find the Ceded Claim Reserve Balance?