CP 341: Life reinsurance cash-flow benefit is not automatically capital relief
A treaty changes specified cash flows and risk sharing. Accounting recognition, capital treatment, counterparty exposure and contract conditions require separate evaluation. Do not infer a regulatory benefit from an economic recovery alone.
Original practice scenario
For an original quota-share arrangement, calculate ceded premiums, benefits and allowances before comparing net cash flows. Then list what must be checked for capital treatment in the applicable framework. A cash-flow spreadsheet does not establish eligibility by itself.
Study check
Write the assumptions, the decision being supported and one limitation. Use the current course syllabus for the required terminology and scope; this introductory guide is not a complete course summary.
Reading sources
ActNet editorial guide · October 1, 2026 · Original illustrative examples.