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IconDEMARCATION BETWEEN HEALTH INSURANCE POLICIES AND MEDICAL SCHEMES

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National Treasury on Demarcation between Health Insurance and Medical Schemes

 
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From The Glossary »

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50% Method:

A method of calculating unearned premiums in short-term insurers. The method calculates UPR of 50% of premiums written for the year. It is based on the assumption that the average date of issue of all policies written during the financial year is the middle of the year. This method is generally used only by reinsurer’s where detailed information on inception dates of risk is not available.
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