Question

Difference between gross premium written and gross premium earned

Answer 1

Known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgments against the business. All assets of the business belong to a sole proprietor, including, for example, a computer infrastructure, any inventory, manufacturing equipment, or retail fixtures, as well as any real property owned by the sole proprietor.

Answer 2

Answer:

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• ↠ The calculated difference between net premium and gross premium equals the expected present value of expense loadings (the amount included in the premium charged for administrative costs) minus the expected present value of future expenses.