What percentage of the unsecured Accrued Retrospective Premium is non admitted?

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Multiple Choice

What percentage of the unsecured Accrued Retrospective Premium is non admitted?

In statutory accounting, assets like the Accrued Retrospective Premium are only admitted to the extent they are secured or collectible. When part of that premium is unsecured, a portion is treated as non-admitted to reflect the risk that it may not be realized. The standard conservative treatment is that 10% of the unsecured Accrued Retrospective Premium is non-admitted, with the remaining 90% admitted if it is expected to be collectible or adequately secured. So, ten percent of the unsecured ARP would be non-admitted. For example, if the accrued retrospective premium is $100,000 and the portion that is unsecured is subject to this rule, $10,000 would be non-admitted and $90,000 would be admitted.

In statutory accounting, assets like the Accrued Retrospective Premium are only admitted to the extent they are secured or collectible. When part of that premium is unsecured, a portion is treated as non-admitted to reflect the risk that it may not be realized. The standard conservative treatment is that 10% of the unsecured Accrued Retrospective Premium is non-admitted, with the remaining 90% admitted if it is expected to be collectible or adequately secured. So, ten percent of the unsecured ARP would be non-admitted.

For example, if the accrued retrospective premium is $100,000 and the portion that is unsecured is subject to this rule, $10,000 would be non-admitted and $90,000 would be admitted.

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