📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      In insurance accounting, what does the "claims reserve"

      represent?
      A Amount set aside for investment purposes Correct Answer Incorrect Answer
      B Amount paid by the policyholder as a premium Correct Answer Incorrect Answer
      C Amount paid by the insurer to the policyholder as a claim Correct Answer Incorrect Answer
      D Amount set aside to cover future claims Correct Answer Incorrect Answer
      E Amount set aside for marketing expenses Correct Answer Incorrect Answer

      Solution

      Explanation: The claims reserve is an amount set aside by the insurer to cover future claims that are likely to arise from insurance contracts.

      Practice Next
      More Accounts Questions

      Relevant for Exams:

      ask-question