Government charges levied on the insurer may be required to be paid while the revenue that they relate to remains unearned.In this case the appropriate accounting treatment in the books of the insurer is to treat the levies paid as:

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Government charges levied on the insurer may be required to be paid while the revenue that they relate to remains unearned. Since the revenue is still unearned, the payment of such levies constitutes a prepayment. Therefore, the appropriate accounting treatment in the books of the insurer is to treat the levies paid as a prepayment.

Government Charges Levied on the Insurer May Be Required to Be