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      Question

      A fire loss incurred but not reported by balance sheet

      date is classified as:
      A Contingent liability Correct Answer Incorrect Answer
      B IBNR claim Correct Answer Incorrect Answer
      C Paid claim Correct Answer Incorrect Answer
      D Salvage Correct Answer Incorrect Answer
      E Subrogation Correct Answer Incorrect Answer

      Solution

      An IBNR (Incurred But Not Reported) claim refers to losses that have occurred before the balance sheet date but have not yet been reported to the insurer. It’s recorded as a provision in the insurer’s books.

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