10/10 Rule: What is the Meaning of 10/10 Rule?
The issue of analyzing and demonstrating risk transfer as a condition for using insurance accounting was formed in the early 1990s with the adoption of Financial Accounting Standards (FAS) 113 (and its equivalent law). ۔ SSAP 62). FAS 113 is a response to perceived abuse and sets the standard for examining whether an item should be labeled as an insurance contract. According to FAS 113, risk transfer must be demonstrated by comparing the current value of the cash flows attached to the contract and, in particular, exceeding a certain threshold of risk importance. The limit, commonly called test 9a and 9b, is: 9a. When insuring an insurance contract, the insurance company carries a significant insurance risk compared to the insurance contract. 9b. The insurance company may incur material losses in the transaction. Although neither meaning nor possibility has been defined in this context, the basic rules for the application of FAS 113 soon emerged. This rule stipulates that if there is a possibility of at least 10% of the value of the current loss of 10 or more (expressed as a percentage of the premium transferred by the contract), then the contract The limit will be exceeded.
Literal Meanings of 10/10 Rule
Meanings of Rule:
Any clear or understood rule or principle that governs the conduct of a particular company or territory
Control or domination of an area or city.
Normal or normal conditions.
A piece of wood or other hard material used to measure the length of a ruler or to mark straight lines.
Judges or court orders in only certain cases.
Use maximum power or authority (an area and its people)
Talk to the authorities and the law to get things done.
Drawing parallel lines (paper)
Sentences of Rule
The rules of the game are understood
The revolution ended British rule
The accident was a rule of thumb
The plastic mold includes a ruler, measurement and drilling instructions.
The region is now ruled by elected politicians
Place the page horizontally and print the information correctly.
Synonyms of Rule
regulation, ruling, directive, order, court order, act, law, by-law, statute, edict, canon, ordinance, pronouncement, mandate, command, dictate, dictum, decree, fiat, proclamation, injunction, commandment, prescription, stipulation, requirement