Reinstatement Prem and RI Comm (For RI Contract Issuing)
Hi,
The battle card shows below:
reinstatement premiums
→ apply against insurance service expenses
ceding commissions on proportional reinsurance treaties
→ could classified as any of insurance revenue, insurance service expense, investment component
So does that mean under IFRS17 Reinstatement Premium is shown on Insurance Service Expense rather than Revenue under current CIA practice? And does that mean RI Comm under IFRS17 can be booked depending mgmt decision (among IR, ISE and Investment Component?)
Thanks and Warm Regards,
Wilson
Comments
It's slightly more complicated but I didn't include all the details in the wiki because in the Exam 6-Canada syllabus, the knowledge statements did not mention anything specifically about "insurance revenue". The BattleCard uses the information provided in the introduction to Section 4 of the reading:
If you continue reading section 4 in the source text, you'll find a much more detailed description of how revenue is treated in various circumstances, but based on the knowledge statements in the syllabus, it doesn't seem like something you are required to know in detail.
okay, that means I can focus somewhere else first lol Thanks Graham.
Do not think that there is much time for any source reading .....
Yup. If you have study time leftover before the exam, you can go back to it, but that rarely happens for Exam 6!
I can't guarantee they won't ask for those details, but it seems unlikely based on my reading of the syllabus. This is an example of playing the odds. Focus first on topics we know will be on the exam.