One Liability on a Property and Liability Insurance Company's Balance

question 28

Multiple Choice

One liability on a property and liability insurance company's balance sheet is for the costs associated with settling and paying reserved claims.This liability is the

• A)pre-paid expense reserve.
• B)loss reserve.
• C)unearned premium reserve.
• D)loss adjustment expense reserve.

---

Definitions:

Monopolistic Competitor

A firm that has many competitors, but sells a product that is differentiated from others, allowing for some control over market price.

Product Promotion

A marketing strategy aimed at increasing consumer awareness of a product or brand, generating sales, and creating brand loyalty.

Product Differentiation

The method of differentiating a product or service from competitors in the marketplace to increase its appeal to a specified target audience.

Monopolistically Competitive

A market structure in which many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.