"Premium Liabilities " and "Policy liabilities in connection with UPR", do they really mean the same

battleacts

"Premium Liabilities " and "Policy liabilities in connection with UPR", do they really mean the same thing, just different wording? They both refer to APV(Claim&LAE) + Future Reinsurance Cost + Maintenance Cost ?

graham

Yes, that's correct. The source reading mentions this in Section 1 in the "Definitions" subsection. Saying "Policy Liabilities in connection with the UPR" is more descriptive because it spells out exactly what it refers to. (But it is a little confusing having 2 different terms for the same concept)

In general:

• policy liabilities = claim liabilities + premium liabilities

or equivalently

• policy liabilities = claim liabilities + policy liabilities in connection with UPR

And note that on the left side of the above equation, the term "policy liabilities" doesn't refer only to the UPR.

battleacts

Thank you for clarifying the terms.