PAA Calculation Sample Clauses
The PAA Calculation clause defines the method for determining the Premium Allocation Approach (PAA) in insurance contracts. It outlines the specific steps and criteria for calculating insurance liabilities under the PAA, such as recognizing premiums received, allocating them over the coverage period, and accounting for acquisition costs. This clause ensures that the financial reporting of insurance contracts is consistent and compliant with relevant accounting standards, thereby providing clarity and transparency in how insurance liabilities are measured and reported.
PAA Calculation. A day of paid absence allowance will be computed on the basis of eight (8) hours per day times the employee’s regular hourly rate of pay. PAA will not be granted in increments of less than two hours.