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An insurance policy incepts on 22 June 2019 , at a premium of $3000 and a commission rate of 20%. After the close of the

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An insurance policy incepts on 22 June 2019 , at a premium of $3000 and a commission rate of 20%. After the close of the financial reporting period at 31 December, there are anticipated incomes of $400. If claims and expenses for the unexpired risk amount to $2000; 3.1 Calculate the earned premium for the policy 3.2 Calculate the unexpired risk provision for the policy 3.3 What items constitute the 'claims incurred' for an insurer? [4 marks ] 3.4 How may claims be discounted for accounting purposes? [4 marks] 3.5 Comment on how reinsurance transactions and salvage recoveries may be recognised in the financial statements of an insurer. [ 6 marks]

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