Premium is derived, and it lands in the general ledger

Premium, Levies And The Close

Every premium line carries its own earning method — daily, 24ths, 12ths, eighths or fully earned — so a policy fee does not distort the subject premium. Statutory levies are ordered and compounding, with caps, floors and rounding, and an insurer-borne leg that is accrued and never invoiced. The quarterly close computes the unearned premium reserve and deferred acquisition cost and posts the movement.

The quarter, closed

Opening reserve plus written, less closing, equals earned — and the run says so on the page. Deferred acquisition cost moves beside it, then Post to Ledger.

533 levy lines, split by who bears them

An insurer-borne levy is a cost and a policyholder-borne one is a collection. A system that cannot tell them apart misstates both.

Premium analysis as a chart

The premium lines charted over time — the same records as the list, drawn rather than tabulated.

Short-rate scales

Both conventions — a scale by months elapsed and one by percentage of term — with the rounding rule written on the record.