Multiple choice general knowledge

Reserves are liabilities representing the amounts of money an insurer estimates it will need to pay its future obligations obligations.

  1. Contingency Reserves

  2. Policy Reserves

  3. All the options

  4. None of the options
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Policy reserves are the liabilities an insurer sets aside to pay future claims and policyholder obligations. They represent the estimated present value of future benefits that must be paid under existing insurance contracts.

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