IIA
IIA-CFSA · Question #415
Recent activities in the marketplace have caused your company to comply with requests from 50 percent of your policyholders to cancel their policies. The company complies and refunds them amounts…
The correct answer is B. Unearned premium reserve. See the full explanation below for the reasoning.
Question
Recent activities in the marketplace have caused your company to comply with requests from 50 percent of your policyholders to cancel their policies. The company complies and refunds them amounts due. Your audit of this should ensure these refunds were charged against what account?
Options
- AIncurred but not reported (IBNR)
- BUnearned premium reserve
- CGoodwill
- DAllocation for uncollectible accounts
How the community answered
(29 responses)- A3% (1)
- B83% (24)
- C3% (1)
- D10% (3)
Community Discussion
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