How to book actuarial review fees
Recording professional fees paid to actuaries for reviewing the loss reserves or pricing of an MGA program.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Professional Fees - Actuarial | Expense | 12,500.00 | - |
| Accounts Payable | Liability | - | 12,500.00 |
💡 Accountant's Note
MGAs often commission actuarial reviews to validate their loss ratios or binder pricing. This is an operating expense unrelated to the fiduciary premium flow.
Practitioner & Systems Framework
💻 ERP Architecture
Record in the General Ledger operating module under the G&A expense category.
⚠️ Audit Flags
Large professional fee payments without a corresponding actuarial report.
📄 Required Documentation
Actuarial engagement letter and the final report summary for valuation support.
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Discussion & Community Questions
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