Which of the following is the correct formula to calculate the unearned premium?

Question

Options

• AUnearned premium = (Policy premium x Unexpired coverage days) / Total number of days in the
• BUnearned premium = (Interest premium x expired coverage days) / Total number of days in the
• CUnearned premium = (Insurance contracts x Reserve coverage days) / Total number of days in the
• DUnearned premium = (Overhead premium x Unexpired coverage days) / Total number of days in

• A
  72% (23)
• B
  16% (5)
• C
  6% (2)
• D
  6% (2)

No community discussion yet for this question.