Accounting Standards Codification

Question 1

two criteria for a short-duration contract

Answer 1

• provides protection for a fixed period of short duration

* allows the insurer to cancel or change the provisions at the end of any contract period

Question 2

example of a reinsurance contract with both retroactive and prospective provisions

Answer 2

contract not finalized until after the primary policy has been written, but before the end of the coverage period