Reasons for the unearned premium reserve include which of the followin

Reasons for the unearned premium reserve include which of the following? I. To pay losses that occur during the policy period. II. To pay premium refunds to policyholders in the event of cancellation.

A) I only
B) II only
C) both I and II
D) neither I nor II

 

 

ANSWER

Answer: C

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