100%. If there is an unearned revenue liability (URL), it may even be recoverable if the K-factor is higher than 100%. If the K-factor is greater than 100% and there is no URL, a portion of the DAC or the total DAC has to be written off immediately, so that the new K-factor is equal 100%. See also Deferred tax Deferred financing cost References External links The free dictionary - Deferred Acquisition Costs Investopedia - Deferred Acquisition Costs Example of Audit Program Insurance in the United States United States Generally Accepted Accounting Principles Costs