Question
Unearned premium reserve (UPR) at year-end requires
time-apportionment for annual policies. For a policy written on 1 Nov with annual premium ₹24,000, how much is unearned at 31 Mar?Solution
Unearned months = Apr–Oct = 7 months left in coverage year; UPR = 24,000×7/12 = ₹14,000.Â
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