1. Unearned premium reserves are determined by the 1/365 method.

2. It has been proved that the Unearned Premium Reserve System plays a positive role in the healthy development of insurable industry from its formation in 1852.

3. The unearned premium reserve is the main liability of non-life insurance company and its veracity has great influence on the solvency evaluation by insurance regulation department.

4. The term "unearned premium reserves" refers to the reserves made by an insurer for unexpired non-life insurance liabilities.

5. The term "unearned premium reserves" refers to the reserves drawn by an insurer for unexpired non-life insurance liabilities.

6. With respect to statutory third-party liability insurance for motor vehicles, it shall adopt the 1/365 to evaluate the unearned premium reserves.

7. What shortcomings exist in our present regulation accounting system that will cause the legal and inevitable distortion of accounting information in unearned premium reserve?