Which Account Refers to the Reserve Set-Aside That Contains the Portion

question 85

Multiple Choice

Which account refers to the reserve set-aside that contains the portion of a premium that has been paid before insurance coverage has been provided?

• A)Unearned premiums.
• B)Prepaid premiums.
• C)Premium reserves.
• D)Policy reserves.
• E)Outstanding premiums.

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Definitions:

Action Alternatives

Possible courses of action available for decision-making in various situations.

Consequences

The outcomes or results that follow from a specific action or decision, which can be intended or unintended, positive, or negative.

Uncertain

A state or condition of having incomplete knowledge or information, often leading to indecision or variability in outcomes.

Testing Criteria

The standards or requirements established to evaluate the performance, quality, or compatibility of a product or system.