A Loss Reserve Established for Each Individual Claim When It

question 3

Multiple Choice

A loss reserve established for each individual claim when it is reported to a property and casualty insurance company is called a(n)

• A)admitted asset.
• B)incurred-but-not-reported (IBNR)reserve.
• C)unearned premium reserve.
• D)case reserve.

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Definitions:

Bananas

A common type of fruit that is elongated and curved, with soft flesh rich in starch covered by a rind, which may be green, yellow, or brown when ripe.

Utility Function

A mathematical representation of how a collection of goods and services maps onto a level of utility or satisfaction for an individual or household.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another good while keeping their level of satisfaction unchanged.

Good X

A generic term for an economic good or commodity that can be used to satisfy wants or needs.