20 November 2007
Unearned premium is premium received in advance. Reserve for unexpired risks arise in general insurance and is a provision to be made for claims likely to arise in future for policies that are live at the end of the year for which a revenue a/c(P&L a/c) is prepared. It is provided on an esimated basis at 40% or 50% of net premiums in fire and Misc. insurances and 100% of net premiums on Hull or marine insurance
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