Pembahasan Ujian PAI: A40 – No. 16 – November 2010

• Benefit budget indicates the amount of money a company expect to pay
  • claims,
  • cash surrenders,
  • and policy dividends during the next period
• The sales expense budget, is base primarily on the cost incurred in selling insurance , in addition to commission cost, these expenses includes cost of
  • advertising,
  • promotion,
  • travel,
  • branch office operation and
  • salaries for marketing personnel
• The general and administrative expense budget includes the other expenses needed to operate company
  • Depreciation on building
  • Computer equipment costs,
  • And administrative salaries

^[1] Mulligan, E. and Stone, G. (1997). Accounting and financial reporting in life and health insurance companies. Atlanta, Ga.: Life Management Institute, LOMA.