3-87 Which account refers to the reserve set-aside that contains the portion of a premium that has been paid before insurance coverage has been provided.

Question

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The account that refers to the reserve set-aside that contains the portion of a premium that has been paid before insurance coverage has been provided is unearned premiums. This is because it represents the amount of premium that the insurer has not yet earned and must be returned to the policyholder if the policy is cancelled before the end of the policy period.

3-87 Which Account Refers to the Reserve Set-Aside That Contains