Allocated PHS stands for which of the following?

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Multiple Choice

Allocated PHS stands for which of the following?

Allocated policyholders' surplus is the portion of an insurer's policyholders' surplus that is allocated to policyholders in the pricing of premiums. Policyholders' surplus represents the insurer's capital and reserves backing policy obligations, similar to equity. In some ratemaking methods, a part of that surplus is allocated to policyholders and included as a load in the premium; this is the allocated PHS. This reflects the value of the insurer's financial strength for policyholders, effectively sharing part of the surplus with them through the premium calculation. The other phrases aren’t standard terms for this concept, whereas allocated policyholders' surplus is the established terminology.

Allocated policyholders' surplus is the portion of an insurer's policyholders' surplus that is allocated to policyholders in the pricing of premiums. Policyholders' surplus represents the insurer's capital and reserves backing policy obligations, similar to equity. In some ratemaking methods, a part of that surplus is allocated to policyholders and included as a load in the premium; this is the allocated PHS. This reflects the value of the insurer's financial strength for policyholders, effectively sharing part of the surplus with them through the premium calculation. The other phrases aren’t standard terms for this concept, whereas allocated policyholders' surplus is the established terminology.

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