If the premium is a single premium received at the inception of the financial guarantee insurance contract, the insurance enterprise shall initially measure the unearned premium
revenue at the amount received.
if the risk of loss arises uniformly over the contract period, the unearned premium
is that portion of the coverage which has not expired.
As with most automobile warranty and vehicle service writers, loss reserves are generally not material, with the bulk of liabilities in the unearned premium
reserves of policies offering multi-year coverage.
Deferred policy acquisition costs increased to reflect the associated acquisition costs on the increased unearned premium
The policy cannot be canceled, but the unearned premium
must be calculated as though the policy had been canceled.
The cumulative effect of the accounting change affected the Company's unearned premium
reserve, loss and loss adjustment expense reserve and deferred acquisition costs, as well as the Company's categories for credits that require a reserve.
7 million in unearned premiums
transferred, which was partially offset by $11.
The agreement will be effective December 31, 2012 when the Company will cede 50% of its unearned premium
on the selected book of business and receive a provisional ceding commission.
15 billion (which combined comprise qualified statutory capital, shown below), and unearned premium
and loss and loss adjustment expense reserves totaling $1.
Pursuant to this reinsurance contract, Vesta's property and casualty subsidiaries will cede an additional 25% of the Companies' unearned premium
for policies in force as of December 1, 2005 and of the written premium for policies issued or renewed during the term of the agreement.
Adjusted book value is defined as book value (stockholders' equity), plus the after-tax value of the net unearned premium
reserve less deferred acquisition costs, plus the after-tax present value of future installment premiums (discounted at 5%).
Fitch considers RVI's capitalization to be strong, albeit non-traditional, as the company has a significant unearned premium
reserve (UPR) balance, a portion of which Fitch includes when measuring RVI's true capital position.