Section 5: LRC: PAA and GMA Considerations
Should Wiki be revised regarding PAA part of calculating LRC?
PAA:
→ LRC = (premiums received) – (insurance acquisition cash flows)
where
→ (premiums received) = (unearned premiums) – (premiums receivable)
"premiums receivable" to be deleted?
Comments
Yeah LRC should just be UEP - DAC
Appendix C of the duration the LRC has 3000 is the total premium, 2900 has been received and 1500 is earned. Unearned premium is 1500 and premium receivable is 100.
The LRC is 1400 here suggesting the formula is:
UEP - premiums to be received - DAC
How come we don't subtract the premiums to be received in your formula above?
This inconsistency has come up multiple times here: https://battleactsmain.ca/vanillaforum/discussion/1440/lrc-formula-under-paa#latest
I would stick to the first screenshot from OP