Question

In insurance accounting, what does the "claims reserve" represent?

ExplanationTheclaimsreserveisanamountsetasidebytheinsurertocoverfutureclaimsthatarelikelytoarisefrominsurancecontracts

A Amount set aside for investment purposes

B Amount paid by the policyholder as a premium

C Amount paid by the insurer to the policyholder as a claim

D Amount set aside to cover future claims

E Amount set aside for marketing expenses

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