Insurance
Lapsed Policy — Unearned Premium Released
Releasing the remaining UPR when a policy lapses due to non-payment of premium.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unearned Premium Reserve (Lapsed Policy) | Liability (-) | 500.00 | - |
| Earned Premium — Lapse Forfeiture | Revenue (+) | - | 500.00 |
💡 Accountant's Note
When a policy lapses, the insurer's obligation to provide future cover ceases. The remaining UPR is released to earned premium. The insurer retains the earned portion regardless.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.