Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity...

Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity B account for the insurance contract with Entity C?



A.
using the modified version of the general model applicable for onerous insurance contracts



B.
using the general model



C.
using a modified version of (a) or (b) applicable to reinsurance contracts held



D.
using the premium allocation approach