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    Question

    A catastrophe event occurs after year-end but before

    approval, affecting many policies. How should the insurer treat it?
    A Adjusting event; recognize additional claim provisions Correct Answer Incorrect Answer
    B Non-adjusting event; disclose nature and estimate Correct Answer Incorrect Answer
    C Ignore as future Correct Answer Incorrect Answer
    D Recognize only if reinsurance available Correct Answer Incorrect Answer
    E Capitalize as asset Correct Answer Incorrect Answer

    Solution

    If event occurred after the reporting period, it’s non-adjusting; disclose.

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