Where the unearned premium and unearned commission calculated in Paragraphs CA-5.1.4 to CA-5.1.6 above is perceived to be insufficient to cover the corresponding claims (net of reinsurance recoveries) and administrative expenses likely to arise after the end of the financial year from contracts concluded before that date, the company must set up a suitable additional provision for unexpired risks to cover this deficiency (premium deficiency).
Amended: January 2007