Net Prem Calc
Why is Net Premium = Premium - deductible reimbursements? both of these are things that the insured owes the insurer, so I don't see why we're subtracting.
Why is Net Premium = Premium - deductible reimbursements? both of these are things that the insured owes the insurer, so I don't see why we're subtracting.
Comments
The key thing here is net premium = premium - outstanding deductible reimbursements. We need to subtract off any deductible amounts we have not recovered to get the premium for the losses the insurer has covered.