IRIS 9
In 2019 Fall #17b,
Deferred premiums, agents' balances and installments booked but deferred and not yet due are explicitly subtracted from the liquid liabilities calculation.
In 2019 Spring #10b,
Deferred agents' balances (admitted) are not subtracted from the calculation of the liquid liabilities calculation.
Why is there a difference?
Comments
In this context, we don't refer to liabilities as "liquid." It's a comparison of liquid assets to liabilities.
Liabilities include unearned premium reserve, which includes deferred agents' balances. But DAB is not part of the liquid assets in the denominator. To make it even with the numerator, an amount equal to DAB is subtracted from the liabilities, to negate that portion of the UEPR.
2019 Spring #10b does subtract DAB; there is no difference.