Author Question: Liability items on an insurer's balance sheet that reflect obligations that must be met in the ... (Read 48 times)

bclement10 · **on:** Jul 11, 2018

Liability items on an insurer's balance sheet that reflect obligations that must be met in the future are called

A) pre-paid expenses.
B) reserves.
C) surplus.
D) nonadmitted assets.

Question 2

The risk-based capital requirements for life insurers are based on a formula that considers four types of risk. One risk reflects whether the insurer will have enough surplus if claims are higher than expected. This risk is called

A) asset risk.
B) insurance risk.
C) interest rate risk.
D) business risk.