Author Question: One item that appears on an insurance company's financial statements is a liability that represents ... (Read 58 times)

Lobcity · **on:** Jul 11, 2018

One item that appears on an insurance company's financial statements is a liability that represents an estimate of the claims reported and adjusted but not yet paid, claims reported and filed but not yet adjusted,

and claims incurred but not yet reported to the company. This liability is called the insurer's
A) net income.
B) loss reserves.
C) admitted assets.
D) unearned premium reserve.

Question 2

A loss reserve established for each individual claim when it is reported to a property and casualty insurance company is call a(n)

A) admitted asset.
B) incurred-but-not-reported (IBNR) reserve.
C) unearned premium reserve.
D) case reserve.