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3.Meanwhile, it shall offset it against the balance of the reinsurance reserve.
4.Article 19 The reinsurance acceptor shall accord with the relevant provisions of the Accounting Standards for Enterprises No. 25 - Original Insurance Contracts when it draws reserves for unearned reinsurance premiums, outstanding reinsurance claims, reinsurance life insurance liabilities and the reinsurance of long-term health care insurance liabilities, and tests the adequacy of the relevant reserves.
5.reinsurance enables a client to get coverage that would be too great for any one company to assume.
6.O.I.N.C. can be reinsured to insurance or reinsurance companies and its payments are guaranteed by the State.
7.The reinsurance acceptor shall, according to the provisions of the reinsurance contract, calculate the interest on the deposit-out reinsurance guarantee of each period and record it into the profits and losses of the current period.
8.The cedant shall, according to the relevant reinsurance contract, calculate the interest on the deposited-in reinsurance guarantee of each period and record it into the profits and losses of the current period.
9.When the cedant adjusts the balance of the unearned premium reserve of the original insurance contract on the balance sheet date, it shall adjust the amount of the receivable reinsurance unearned premium reserve accordingly.
10.Since our country has entered the WTO, statutory reinsurance will debase at the rate of 25% per year and be cancelled at 2006. The researches about reinsurance are much accounted, especially the Optimal Reinsurance Problem (ORP).
