Net InvInc vs Total InvInc vs InvInc
I know the Net InvInc = InvInc + Realized Gain/Loss - Tax
Is the Total InvInc = InvInc + Realized Gain/Loss? When it doesn't mention "Total" I will just treat it as the InvInc in the formula?
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I know the Net InvInc = InvInc + Realized Gain/Loss - Tax
Is the Total InvInc = InvInc + Realized Gain/Loss? When it doesn't mention "Total" I will just treat it as the InvInc in the formula?
Comments
In the ROR formula, ( U/W.Inc - CapGains + InvInc + IncFrmSubs ) / GWP, I assume the InvInc has included the realized gain/loss, that's why it is substracted from the formula.
Someone asked a very similar question a few years ago. Here's the link to their question and my response:
If that doesn't answer your question, please let me know. (The wording used in exam questions is sometimes confusing but if you state your assumption, whatever it is, the graders usually take that into account.)