RSPs
According to the source text, the original insurance contract is issued by a member company (let's call it Company A).
Company A accounts for this original contract as insurance contract issued.
Company A cedes some of the insurance risk from the original contract to the collective of FA membership.
Company A accounts for this ceded risk as reinsurance contract held.
The collective of FA membership assumes the ceded risk from Company A.
The collective of FA membership accounts for this assumed risk as reinsurance contract issued.
Is my understanding correct?
Comments
Yup that's my understanding of this text too