Is there some sort of logic for why the payment from the reinsurer in a novation is treated as a reduction to premium, while the payment in a runoff agreement is recorded as a paid loss?
I'm trying to figure out a way to memorize these types of differences, since I keep mixing them up in my head.
I'm trying to figure out a way to memorize these types of differences, since I keep mixing them up in my head.
Novation vs. Runoff
