> ## Documentation Index
> Fetch the complete documentation index at: https://docs.amlok.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Premium finance benchmarks

> Evaluate financed insurance premiums, payment obligations and supported recoverable exposure.

Use the premium-finance agreement, insured party and underlying policies as linked objects. Keep borrower installments, insurer premium and any contractually recoverable premium amounts separate.

## Financial-risk measures

| Measure | Definition and comparison rule |
| - | - |
| Financed exposure | Outstanding principal and documented financed charges at the observation date. |
| Payment burden | Scheduled installments relative to supported household or business cash flow. |
| Arrears | Unpaid contractual amounts and days past due, including valid adjustments. |
| Recoverable-premium coverage | Supported recoverable premium divided by outstanding exposure, only where policy terms and applicable rights establish recoverability. |
| Recovery timing | Elapsed time from a defined event to actual receipt, retaining partial receipts and unresolved cases. |
| Net loss | Exposure remaining after observed recoveries, with fees and costs identified. |

Do not assume that the unexpired policy period implies a fully refundable premium. Minimum-earned terms, taxes, fees and contractual rights can change the recoverable amount.

## Public benchmark sources

[OSFI's public financial returns](https://www.osfi-bsif.gc.ca/en/data-forms/open-government-osfi-financial-data/working-open-government-data) provide insurer context, not a matched borrower-level premium-finance repayment panel. This collection does not derive a universal premium-finance loss rate from those returns.

A usable benchmark needs an authorized agreement ledger, policy terms, due dates, actual payments and observed recoveries. It must distinguish a calculated recoverable amount from money actually received.

## AMLOK evaluation

Measure policy-to-agreement matching, installment extraction and calculation of supported exposure. Test whether the model identifies missing or conflicting recoverability terms instead of assuming a value.

Hold out borrowers and policy periods. Compare arrears and net-loss performance only after the defined outcome horizon has matured. For Signal, evaluate supported payment, cash-flow and coverage changes. Keep insurer or lender policy administration and intervention outside AMLOK's assessment workflow.

Follow the [financial analysis methods](https://docs.amlok.io/research/financial-analysis.md) and [benchmark contract](https://docs.amlok.io/research/industries/index.md#benchmark-contract). These policy-related measures do not change AMLOK's own service-credit or account-cancellation terms.


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