In the Situation That at Year End an Insurer Is

question 62

True/False

In the situation that at year end an insurer is aware that there has been flooding in an area in which it has insured policy holders against flooding,the insurer should estimate the probable claims and treat them as an expense of the current period even though the claims have not yet been made.

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Definitions:

Sum

The total result obtained when two or more numbers or quantities are added together.

Product

An item or service created through a process, available for exchange or sale.

Pulse

The rhythmic expansion and contraction of an artery as blood is forced through it, commonly felt at various points in the body to measure the heart rate.

Symbol

An abstract or representational figure used to signify concepts, quantities, or operations in various fields such as mathematics, physics, and chemistry.