28.
The methodology for recognising insurance shall capture the following elements through discounts or haircuts in the amount of insurance recognition: the residual term of an insurance policy, where less than one year, as noted above; a policy's cancellation terms, where less than one year; and the uncertainty of payment as well as mismatches in coverage of insurance policies.
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Source: EUR-Lex (Cellar) · retrieved 2026-10-09 · Text as adopted (Official Journal); later amendments are not incorporated in this text.